Abstract
This study investigates the impact of democracy indices on the literacy rate. Panel Data of 134 Countries from 2007-2018 were collected from the website the World Bank and Gapminder. This study uses Ordinary Least Square (OLS), Pooled Ordinary Least Square (POLS), Driscoll-Kraay (DK), Second Stage Least Square (2SLS), Generalized Methods of Moments (GMM) methods. This research has found that political participation index and political culture index has a significant positive relationship with literacy rate in all the method. The functioning of the government index has a significant positive relationship and electoral process and the pluralism index has a significant negative relationship with literacy rate in all the methods except the GMM method. The civil liberties index has a significant negative relationship with literacy rate in POLS and in the other models, there is no significant relationship between the civil liberties index and literacy rate.
Highlights
Education encourages democracy so people can make informed choices on elections, and is a pillar of a healthy and prosperous society Lipset (1959)
The objective of the study is to focus on the relationship of democracy indices with literacy rate
With the aim to identify the impact of democracy indices on literacy rate, first, we are going to analyze the correlations among the variables we obtained from literature
Summary
Education encourages democracy so people can make informed choices on elections, and is a pillar of a healthy and prosperous society Lipset (1959). Because schooling is the only way for parents to boost their children's chances of a prosperous life (Keefer et al 2004), democracy will achieve a country's educational standard (Besley et al 2006). Literacy is seen as an important contribution to socio-economic development. A country's economic success relies largely on the natural capital it possesses, and human resources are an important aspect of economic resources. Ample school infrastructure continues to improve the rate of literacy and is one of the main components of benchmarks for human growth. The higher the income of the household, the more likely it is that the children will have a high degree of literacy, that is to say, while analphabetism does not cause poverty, poverty causes illiteracy (Street, 1995)
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