The economic and environmental factors' influence on HDI in Southeast European countries

Abstract

Human development can be defined as the process of enriching the basic freedoms, capabilities and opportunities of individuals with the aim of improving their general well-being. This concept includes the people's knowledge, abilities and skills enrichment, the expansion of their possibilities of choice, the encouragement of freedoms and the human rights enjoyment as wider determinants of the societal development. This article is devoted to the study of the impact of some economic and environmental factors on the Human Development Index (HDI) in nine selected countries of Southeast Europe in the period from 2006 to 2019. In addition to the presented HDI calculation methodology, the article also uses the Cross-sectional Seemingly Unrelated Regression (SUR) estimation technique, which indicated a positive and significant impact of the living standard, but at the same time a negative and significant impact of industrial development and the service sector on the HDI. On the other hand, a negative and significant impact of renewable energy sources is also observable, which suggests that decision-makers should encourage appropriate measures, innovations and investments in renewable energy sources more intensively with the aim of boosting further human development and environmental protection.