The Effect of Good Governance on Human Development in Islamic and OECD Countries

Development is one of the most important goals in all countries. So, all countries try to achieve economic freedom, democracy, elimination of poverty and then economic development. Human Development approach considers the people as the real resources of any country. In this research, it is tried to analyze the impact of good governance on Human Development Index in Islamic selected countries and OECD selected countries during 2005-2012 by using FGLS regression technique. To get the goal, some control variables are also selected for the model. The results represent that, in OECD countries, there is a significant positive relation between good governance and economic freedom and human development. However, in Islamic countries, there is not significant relation between these two variables in human development.