Civil rights, being true essence of democracy, crucially affect the economic growth and development of countries. The empirical literature points out that democracy improves economic growth of countries along with significant role of civil rights. The present study aims to empirically analyze the impact of democracy and civil rights on economic development in panel of 86 countries for the period 1990-2017. The panel is divided into three clusters as high, middle and low income countries, based on income levels. This relationship is empirically tested by employing instrumental variable regression, particularly 2SLS estimation technique. The findings of the study suggest that there exists a statistically significant and negative relationship between democracy and economic development and also between civil rights and economic development, to assert the exclusive impact of these two. But there exists a complementarity between democracy and civil rights. The study confirms a significant positive relationship between the interaction of democracy civil rights and economic development, which implies presence of both democracy and civil rights is mandatory for economic growth and development. The findings of the study shows that democracy and civil rights are complementary as far as economic development is concerned. So, the selected sample of countries needs to prioritize the resolution of issues linked with both democracy and civil rights for smooth functioning of the economy. Supervisor:- Dr. Karim Khan