Faculty of Business and Law
School of Accounting, Finance and Economics / Finance, Economics, Markets and Accounting Research Centre
This paper evaluates the effects of economic growth and democracy on human development using panel data over 170 countries for the period 1980-2010. Our results show that democracy enhances human development in any level of economic development. However, economic growth increases human development only in developing countries. The interaction effect between economic growth and democracy shows that democracy increase human development in developing countries where growth level is low.