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Which Economic Freedoms Contribute to Growth? A Comment

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Author Info
Sturm, Jan-Egbert
Leertouwer, Erik
de Hann, Jakob

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Abstract

Most studies on the relationship between economic freedom and growth employ a measure of economic freedom based on an (ad hoc) aggregation of various underlying components. We argue that the alternative aggregation procedure as recently suggested by Heckelman and Stroup (2000)--which aggregation is directly based upon the relevance of each component for growth, as determined by multivariate regression analysis--seriously flawed. We present an alternative index based on latent variable estimation techniques. Using standard robustness analyses we find that this index of economic freedom is not robustly related to economic growth. Copyright 2002 by WWZ and Helbing & Lichtenhahn Verlag AG

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

Volume (Year): 55 (2002)
Issue (Month): 3 ()
Pages: 403-16
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Handle: RePEc:bla:kyklos:v:55:y:2002:i:3:p:403-16

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  1. 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:
  2. Berggren, Niclas, 2003. "The Benefits of Economic Freedom: A Survey," Ratio Working Papers 4, The Ratio Institute. [Downloadable!]
  3. Christian Bjørnskov & Nicolai Foss, 2008. "Economic freedom and entrepreneurial activity: Some cross-country evidence," Public Choice, Springer, vol. 134(3), pages 307-328, March. [Downloadable!] (restricted)
    Other versions:
  4. 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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This page was last updated on 2009-12-2.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.