Impact of Trade Liberalization on HDI in Developed Country

Through economic growth، trade liberalization increases the human development indices while having a direct impact on human development. Economic growth arising from the expansion of trade promotes educational and hygienic services availability and stimulate human development. Trade has different impact on various economies in regard with the country’s degree of development، Therefore، in this study، with a focus on developing countries، to address this issue that whether the trade extension and foreign direct investment (FDI) is an effective tool of economic stability and development in the current international scenario in case of developing country or not? The data used in this study are obtained of 144 developing countries for the period 2002-2011. The regression model estimated in the form of panels and using soft ware Stata11 and Final results have been extracted. Here the annual UN human development index is used as criteria for showing countries’ level of development; and the percentage of total trade to GDP and foreign investment as trade volume index. The results indicate a positive impact of trade liberalization and increasing foreign direct investment on the Human Development Index in developing countries