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The Determinants Of Economic Freedom: A Survey

Author

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  • Robert A. Lawson
  • Ryan Murphy
  • Benjamin Powell

Abstract

A large literature has found positive associations between economic freedom and income, growth, and a variety of other desirable outcomes. This paper surveys the literature that seeks to explain the causes of economic freedom. Some of the most consistent findings in this literature are that current levels of economic freedom are strongly correlated with past levels; freer countries have more difficulty continuing to improve their economic freedom; democracy and political freedom are positively associated with economic freedom; and inequality is negatively related. (JEL E02, E14, O17, O43, P1)

Suggested Citation

  • Robert A. Lawson & Ryan Murphy & Benjamin Powell, 2020. "The Determinants Of Economic Freedom: A Survey," Contemporary Economic Policy, Western Economic Association International, vol. 38(4), pages 622-642, October.
  • Handle: RePEc:bla:coecpo:v:38:y:2020:i:4:p:622-642
    DOI: 10.1111/coep.12471
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    8. Marta Marson & Matteo Migheli & Donatella Saccone, 2021. "New evidence on the link between ethnic fractionalization and economic freedom," Economics of Governance, Springer, vol. 22(3), pages 257-292, September.
    9. Jamie Bologna Pavlik & Benjamin Powell & Andrew T. Young, 2022. "Does aid cause changes in economic freedom?," Southern Economic Journal, John Wiley & Sons, vol. 89(1), pages 90-111, July.
    10. Marcel Ausloos & Philippe Bronlet, 2022. "Economic Freedom: The Top, the Bottom, and the Reality. I. 1997-2007," Papers 2201.09073, arXiv.org.
    11. Dzhumashev, Ratbek & Hailemariam, Abebe, 2021. "Foreign aid and the quality of economic institutions," European Journal of Political Economy, Elsevier, vol. 68(C).
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    13. Ryan H. Murphy, 2022. "On Whether the Size of Government Belongs in Economic Freedom Indices," Econ Journal Watch, Econ Journal Watch, vol. 19(1), pages 1-47–57, March.
    14. Peter Calcagno & Joshua C. Hall, 2020. "Formal and informal constraints on state government and economic freedom," Economics Bulletin, AccessEcon, vol. 40(1), pages 801-806.
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    19. Grier, Kevin B. & Grier, Robin M., 2021. "The Washington consensus works: Causal effects of reform, 1970-2015," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 59-72.
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    21. Ryan H. Murphy, 2023. "Stefon Dercon: Gambling on development: Why some countries win and others lose. London: Hurst, 2022. 398 pages. USD $34.95 (hardback)," Public Choice, Springer, vol. 196(1), pages 217-222, July.
    22. Bryan C. McCannon & Joshua C. Hall, 2021. "Stay‐at‐home orders were issued earlier in economically unfree states," Southern Economic Journal, John Wiley & Sons, vol. 87(4), pages 1138-1151, April.
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    More about this item

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E14 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Austrian; Evolutionary; Institutional
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies

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