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

Document Type : Research Paper

Authors

1 master of Economics, University of Bojnord,

2 Assistant Professor of Economics, University of Bojnord

10.30465/jnet.2022.42228.1926

Abstract

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.

Keywords

References

بافنده ایماندوست، صادق؛ منتظری، سمانه؛ و پایه­دار، ریحانه. (1392). بررسی رابطه دموکراسی و توسعه انسانی در کشورهای عضو اوپک. مجله اقتصاد و توسعه منطقه ای، سال بیستم، دوره جدید شماره پنجم، صص 116-97.
فطرس، محمد‌حسن؛ اکبری شهرستانی، فاطمه؛ و میرزایی، محمد. (1391). بررسی اثر آزادی اقتصادی بر امید به زندگی (مطالعه کشور‌های منتخب، شامل ایران، با رویکرد داده‌های تلفیقی). فصلنامه راهبرد اقتصادی، سال اول، شماره 3، صص 193-170.
متفکر آزاد، محمدعلی؛ اسدزاده، احمد؛ امینی خوزانی، محسن؛ و شیرکش، محمود. (1392). تحلیل اثرات همزمان آزادی اقتصادی، توسعه­ی انسانی و آزادی سیاسی در کشورهای منتخب اسلامی (2010-2001). فصلنامه پژوهشهای رشد و توسعه اقتصادی، سال چهارم، شماره 13، صص 96-79.
مکیان، سید نظام‌الدین و بی‌باک، مژده. (1394). تأثیر حکمرانی خوب بر توسعه انسانی: یک تحلیل بین کشوری. فصلنامه مدلسازی اقتصادی، سال نهم، شماره 2، صص 131-147.
منصوری، سید امین و افقه، سید مرتضی. (1396). بررسی اثرهای متقابل آزادی و حکمرانی بر توسعه انسانی (رویکرد داده‌های تابلویی در دوره 1995-2015). فصلنامه مطالعات راهبردی سیاست‌گذاری عمومی، دوره هفتم، شماره 25، صص 155-135.
Annaka Susumu. Higashijima Masaaki. (2017). Democratization and Human Development. WINPEC Working Paper Series, No. E1712.
Becker. P., & Raveloson, J-A. A. (2008). WHAT IS DEMOCRACY? http://library.fes.de/pdf-files/bueros/madagaskar/05860.pdf.
Berggren, O. (2012). Democracy and Human Development: a Cross-National Analysis, https://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=2544420&fileOId=2544421.
Besley, T., & Kudamatsu, M. (2006) Health and democracy. American economic review, Vol. 96, No. 2, pp. 313-318. ISSN 0002-8282
Boix Carles. (2001). Democracy and Redistribution. https://www.princeton.edu/~cboix/book-sample.pdf.
Brown D.S. & Hunter W. (2004). Democracy and Human Capital Formation in Latin America.
Brown D.S. & Mobarak A. M. (2009). The Transforming Power of Democracy: Regime Type and the Distribution of Electricity.
Cohen, C. (1972). Communism, fascism, and democracy: the theoretical foundations (2d Ed.). New York: Random House.
Dahl, R. A. (2000). A Democratic Paradox? Political Science Quarterly, 115(1), 35–40. https://doi.org/10.2307/2658032
Diamond, L. (1992). Economic Development and Democracy Reconsidered. American Behavioral Scientist, No.35, pp. 450-499.
Esposto, A.G., Zaleski, P.A. (1999). Economic Freedom and the Quality of Life: An Empirical Analysis. Constitutional Political Economy, No.10, pp.185–197.
Feldmann, H. (2017). Economic freedom and human capital investment. Journal of Institutional Economics, Vol. 13, No. 2, pp.421- 445. Doi: 10.1017/S174413741600028X.
Gauri, V., & Khaleghian, P. (2002). Immunization in Developing Countries: Its Political and Organizational Determinants.
Gerring, J. Knutsen, C. H. Maguire, M. & Skaaning, S-E Teorell, J. & Coppedge, M. (2021). Democracy and human development: issues of conceptualization and measurement, Democratization, Vol. 28, No. 2, pp.308-332.
Gehring, K. (2013). Who benefits from economic freedom? Unraveling the effect of economic freedom on subjective well-being. World Development, No.50, pp.74-90.
Georgiou, Miltiades N. (2015). Economic Freedom and Human Development Index - A Panel Data Analysis (2000- 2012). http://dx.doi.org/10.2139/ssrn.2601736
Gerring, J., Thacker, S. C., & Alfaro, R. (2012). Democracy and Human Development. The Journal of Politics, Vol. 74, No. 1, pp.1-17.
Ghobarah H.A., Huth, P. Russett B.M. (2004). Comparative Public Health: The Political Economy of Human Misery and Well‐Being.
Graafland, J. (2020). Contingencies in the relationship between economic freedom and human development: The role of generalized trust. Journal of Institutional Economics, 16(3), 271-286. Doi: 10.1017/S1744137419000705
Gwartney, J. and Lawson, R. (2004). Economic Freedom of the World: 2004 Annual Report (Vancouver, BC: Fraser Institute, 2004).
Gwartney, J., Lawson, R., Hall, J., & Murphy, R. (2020). Economic Freedom of the World: 2020 Annual Report - executive summary, Economic Freedom Network & Fraser Institute. Retrieved from https://policycommons.net/artifacts/1542945/economic-freedom-of-the-world/2232755/ on 20 Jul 2022. CID: 20.500.12592/1314zq.
Hall, J., R. Sobel, and G. Crowley (2010). Institutions, Capital, and Growth. Southern Economic Journal, Vol. 13, No. 2, pp. 385-405.
Johnson, B. T., Holmes, K. R. and Kirkpatrick, M. (1999). The Index of Economic Freedom. Washington, D.C., Heritage Foundation.
Kurzman Charles. Werum Regina. Burkhart Ross E. (2002).  Democracy's Effect on Economic Growth: A Pooled Time-Series Analysis, 1951–1980.
Lake, D.A. Baum M.A. (2001). The Invisible Hand of Democracy political control and the Provision of Public Services. COMPARATIVE POLITICAL STUDIES, Vol. 34, No. 6, pp.587-621.
Leftwich, L. (2002) Democracy and Development, New Political Economy, 7(2), 269-281, DOI: 10.1080/13563460220138871
Lipset, S. M. (1959). Some Social Requisites of Democracy: Economic Development and Political Legitimacy. American Political Science Review, Vol. 53, No. 1, pp.69-105.
McGuire William J. (2004). A Perspectivist Approach to Theory Construction
Naanwaab, C. (2018). Does Economic Freedom Promote Human Development? New Evidence from a Cross-National Study. The Journal of Developing Areas, Vol. 52, No. 3, pp. 183-198.
Nayak, P. (2008). Human Development: Concept and Measurement. Oxford University Press, New Delhi, pp.3-18.
Nikolaev, B. (2014). Economic Freedom and Quality of Life: Evidence from the OECD, s Your Better Life Index. The Journal of Private Enterprise, Vol. 29, No. 3, pp. 1-35.
Przeworski A., Alvarez, M. Cheibub J.A. & Limongi, F. (2000). Democracy and Development.
Ross, M. (2006). Is Democracy Good for the Poor? American Journal of Political Science, Vol. 50, No. 4, pp.860–874.
Shandra, J.M., Nobles, J., London, B., & Williamson, J.B. (2004). Dependency, Democracy, and Infant Mortality: A Quantitative Cross-National Analysis of Less Developed Countries
Stroup, M. (2007). Economic Freedom, Democracy, and the Quality of Life. World Development, Vol. 35, No. 1, pp., 52-66.
Vourkoutiotis, V. (2002) Democracy and human development: A critical empirical investigation using data from 123 countries, 1970-1990. PhD thesis, London School of Economics and Political Science.
Welzel, C., & Inglehart, R. (2005). Democratization as the Growth of Freedom: The Human Development Perspective. Japanese Journal of Political Science, Vol. 6, No. 3, pp.313-343. Doi: 10.1017/S1468109905001933
Wigley S & Akkoyunlu-Wigley A. (2011). The impact of regime type on health: does redistribution explain everything? World Polit, Vol. 63, No. 4, pp.647-77. DOI: 10.1017/s0043887111000177. PMID: 22175088.

Files

History

  • Receive Date: 01 August 2022
  • Revise Date: 31 August 2022
  • Accept Date: 20 September 2022

Share

How to cite

Statistics