The Effect of Economic Freedom and Democracy on Human Development (Case Study: OPEC Selected Countries)

In recent years, human development has gained great importance among the countries over the world. Achieving higher human development requires identifying the factors affecting it. Economic freedom and democracy are among the effective factors discussed in this research. In this paper, using panel data, the effect of economic freedom and democracy on human development in selected OPEC countries is investigated over the period 2005-2020. For this purpose, Generalized Least Squares (GLS) econometric method has been used. The estimation results show that the variables of democracy and economic freedom have a positive and significant effect on human development. In addition, the variables of population, employment of women, and employment in industry have a positive and significant effect, and the variable of urbanization has a negative and significant effect on the human development index.In recent years, human development has gained great importance among the countries over the world. Achieving higher human development requires identifying the factors affecting it. Economic freedom and democracy are among the effective factors discussed in this research. In this paper, using panel data, the effect of economic freedom and democracy on human development in selected OPEC countries is investigated over the period 2005-2020. For this purpose, Generalized Least Squares (GLS) econometric method has been used. The estimation results show that the variables of democracy and economic freedom have a positive and significant effect on human development. In addition, the variables of population, employment of women, and employment in industry have a positive and significant effect, and the variable of urbanization has a negative and significant effect on the human development index.