University of Co-Operative and Management, Sagaing

Economics Development (MPA 121)

1mpa25 Ma Khin Hnin Phyu Assignment I

Computing the NHDI : The Case of Vietnam

Indicator Value

Observed Maximum Life Expectancy yrs = 83.2

Minimum Life Expectancy yrs = 20
Maximum average actual years of schooling = 13.2
Minimum average years of schooling = 0
Maximum Expected years of schooling = 20.6
Minimum Expected years of schooling = 0
Maximum Income = US$ 108,211
Minimum Income = US$ 163
Maximum Expected Year of Schooling = 0.951

Life Expectancy at Birth - 74.9

Mean Years of Schooling - 5.5
Expected Years of Schooling - 10.4
GNI Per Capita - 2995

Life expectancy Index = 74.9 – 20 / 83.2 – 20

= 54.9 / 63.2
= 0.869

Mean years of schooling Index = 5.5 – 0 / 13.2 – 0

= 0.417

Enrolled years of schooling Index = 10.4-0 / 20.6-0

= 0.505
Education Index = √0.417x0.505-0/0.951-0
= 0.459 / 0.951
= 0.482

Income Index = In(2995) – In(163) / In(108211)- In(163)

= 2911/6498
= 0.448

New Human Dvelopment Index (NHDI) = 3√ LEI * EI * Income I

= 3√ 0.869*0.482*0.448
= 3√0.18767
= 0.572

Computing the HDI : The Case of Sudan

Indicator Value

GDP Per Capita - 2086

Life expectancy(yrs) - 57.9
Adult Literacy(%) - 60.9
Gross Enrollment Ratio - 39.9

Income index = log (2086) – log (100) / log (40000) – log (100)
= 3.319 – 2 / 4.602 – 2
= 1.319 / 2.602
= 0.507

Life expectancy index = (57.9 – 25)/(85 – 25)

= 32.9 / 60
= 0.548

Adult Literacy Index = (60.9 – 0)/(100 – 0)

= 0.609

Gross Enrollment Index = (39.9 – 0)/(100 – 0)

= 0.399

Education index = 2/3(Adult Literacy Index) + 1/3(Gross Enrollment Index)

= 2/3(0.609) + 1/3(0.399)
= 0.539
HDI = 1/3(Income index) + 1/3( Life expectancy) + 1/3(Education index)
= 1/3(0.507) + 1/3(0.548) + 1/3(0.539)
= 0.531