HUMAN DEVELOPMENT DISPARITIES IN SOUTH ASIA: A PANEL DATA INVESTIGATION OF AFGHANISTAN AND SAARC COUNTRIES

Abstract This research examines enduring disparities in human development across the South Asian Association for Regional Cooperation (SAARC) nations, specifically highlighting Afghanistan's structural obstacles. This study utilizes a balanced panel dataset encompassing seven SAARC nations from 2000 to 2023, applying panel econometric techniques including a Fixed Effects model (validated through a robust Hausman test) and Pooled OLS estimators to analyze the influence of critical socioeconomic factors like life expectancy, average years of schooling, expected years of schooling, and gross national income per capita on the Human Development Index (HDI). Clustered standard errors at the country level are used to ensure the robustness of the results. The empirical findings indicate that all four factors exert statistically significant positive influences on HDI, affirming the essential role of health, education, and wealth in determining human development outcomes. The results indicate that Afghanistan consistently lags behind its regional counterparts, even when accounting for fundamental socioeconomic variables, implying that further structural impediments may be hindering its developmental advancement. These findings provide compelling evidence for policymakers to prioritize investments in health, education, and equitable income growth to bridge enduring development disparities and expedite progress towards the Sustainable Development Goals. Keywords: Human Development Index, SAARC, Panel Data, Socioeconomic Determinants, Afghanistan