NATIONAL ICT, ECONOMIC FREEDOM AND HUMAN DEVELOPMENT: A CROSS-COUNTRY DYNAMIC PANEL DATA ANALYSIS
Keywords:
Human Development, Information and Communication Technologies, Economic Freedom, Information Asymmetry Theory, Neoliberal Economic Theory, Public Policy, Dynamic Panel Data AnalysisAbstract
Human Development Level (HDL) is considered to be one of the most important factors in determining the dignity of citizens and attractiveness of a country. Nations, which are aware of the importance of Information and Communication Technologies (ICT) make policies to encourage investments both in public and private sectors, and to advance the adaptation of the population. Likewise, economic freedom level (EFL) is a factor displaying the attractiveness of a country in the eyes of global capital. Our objective in this study is to investigate the effects of ICT and EFL on nations’ HDL, based on panel data of 118 countries covering the period of 2000-2011. We employ dynamic panel data analysis and find that ICT, EFL significantly increase HDL in positive direction. Based on our findings, HDL is a very significant aspect for any nation, and so it is recommended that governments who chase after increasing HDL should allocate more resources to progress ICT diffusion and establish more economically free environment.
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