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The Path of Liberalization and Economic Growth

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  • Pitlik, Hans

Abstract

Empirical research has shown that both more economic freedom and a higher stability of policy variables are supportive for economic growth. Thus, the path of policy liberalization may have a considerable influence on a nation's growth performance. Using the Fraser-index of economic freedom, this article shows empirically that policy volatility proves to be growth depressing, even if the state liberalizes the economy in the long-run. Growth is significantly higher if liberalization occurs on a smoother path. Copyright 2002 by WWZ and Helbing & Lichtenhahn Verlag AG

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 55 (2002)
Issue (Month): 1 ()
Pages: 57-79
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Handle: RePEc:bla:kyklos:v:55:y:2002:i:1:p:57-79

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Cited by:
  1. Jakob De Haan & Susanna Lundström & Jan-Egbert Sturm, 2006. "Market-oriented institutions and policies and economic growth: A critical survey," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 157-191, 04.
  2. Tobias Knedlik & Franz Kronthaler, 2006. "Forced to Freedom? Empirical Relations between Aid and Economic Freedom," IWH Discussion Papers 8, Halle Institute for Economic Research.
  3. I Kadek Dian Sutrisna Artha & Jakob de Haan, 2011. "Labor Market Flexibility and the Impact of the Financial Crisis," Kyklos, Wiley Blackwell, vol. 64(2), pages 213-230, 05.
  4. Vatcharin Sirimaneetham, 2006. "Explaining policy volatility in developing countries," Bristol Economics Discussion Papers 06/583, Department of Economics, University of Bristol, UK.
  5. Berggren, Niclas, 2003. "The Benefits of Economic Freedom: A Survey," Ratio Working Papers 4, The Ratio Institute.
  6. José Aixalá & Gema Fabro, 2009. "Economic freedom, civil liberties, political rights and growth: a causality analysis," Spanish Economic Review, Springer, vol. 11(3), pages 165-178, September.
  7. John W. Dawson, 2003. "Regulation, Investment, and Growth Across Countries," Working Papers 03-10, Department of Economics, Appalachian State University, revised 2006.

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