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Which Economic Freedoms Contribute to Growth?

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Author Info
Heckelman, Jac C
Stroup, Michael D

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Abstract

The literature on economic freedom and growth has utilized summary measures of freedom to determine its general significance for economic growth. We believe the summary measures lead to misspecification problems. We utilize Heston-Summers growth data to determine which of the disaggregated categories of economic freedom lead to growth and find that only a few of the indexes significantly affect growth. These growth regressions generate new weights for aggregating the indexes into an overall summary measure. This new measure can be interpreted as deriving a relative ranking of nations that have a relatively higher presence of growth promoting economic freedoms and more restrictions on those economic freedoms that inhibit growth. Copyright 2000 by WWZ and Helbing & Lichtenhahn Verlag AG

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Publisher Info
Article provided by Blackwell Publishing in its journal Kyklos.

Volume (Year): 53 (2000)
Issue (Month): 4 ()
Pages: 527-44
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Handle: RePEc:bla:kyklos:v:53:y:2000:i:4:p:527-44

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  1. Heckelman, Jac & Knack, Stephen, 2005. "Foreign aid and market-liberalizing reform," Policy Research Working Paper Series 3557, The World Bank. [Downloadable!]
    Other versions:
  2. Tobias Knedlik & Franz Kronthaler, 2006. "Forced to Freedom? Empirical relations between aid and economic freedom," IWH Discussion Papers 8-06, Halle Institute for Economic Research. [Downloadable!]
    Other versions:
  3. Boockmann, Bernhard & Dreher, Axel, 2002. "The Contribution of the IMF and the World Bank to Economic Freedom," ZEW Discussion Papers 02-18, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  4. Heckelman, Jac C. & Powell, Benjamin, 2008. "Corruption and the Institutional Environment for Growth," Working Papers 2008-6, Suffolk University, Department of Economics. [Downloadable!]
  5. Joshua Hall & Robert Lawson, 2008. "Theory and evidence on economic freedom and economic growth: A comment," Economics Bulletin, Economics Bulletin, vol. 15(18), pages 1-6. [Downloadable!]
  6. Jac C. Heckelman, 2000. "Economic Freedom and Economic Growth: A Short-run Causal Investigation," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 71-91, May. [Downloadable!]
  7. Berggren, Niclas, 2003. "The Benefits of Economic Freedom: A Survey," Ratio Working Papers 4, The Ratio Institute. [Downloadable!]
  8. Nathan Ashby & Russell Sobel, 2008. "Income inequality and economic freedom in the U.S. states," Public Choice, Springer, vol. 134(3), pages 329-346, March. [Downloadable!] (restricted)
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  9. Judit Kapás & Pál Czeglédi, 2007. "Economic Freedom: Theory First, Empiricism After," ICER Working Papers 10-2007, ICER - International Centre for Economic Research. [Downloadable!]
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