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On the Relationship between Economic Freedom and Output per Worker: The Case of Asia-pacific Countries

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  • Noha Emara

    (Department of Economics, Helwan University, Helwan, Egypt,)

  • Loreto Reyes Rebolledo

    (School of International and Public Affairs, Columbia University, USA.)

Abstract

In this paper we study the effect of economic freedom on output per worker using a panel least square estimation methodology for a sample of 14 Asia-pacific (APAC) and 18 OECD countries over the 1980-2014 period. This methodology allows us not only to study the relationship between the economic freedom and output per worker in APAC countries but also compare it with the empirical association between economic freedom and output per worker observed in OECD countries. The study also investigates the role of governance in affecting the impact of economic freedom on output per worker and its components. Our results indicate that (1) economic freedom has a positive and statistically significant impact on output per worker when we consider all countries in the sample and control for country-and time- fixed-effects. (2) A country's economic freedom has a on its positive and statistically significant impact on its output per worker, but this effect higher for OECD countries than for APAC countries. (3) For APAC countries, a country's size of government, legal system, and regulation has a positive and statistically significant impact on its output per worker.

Suggested Citation

  • Noha Emara & Loreto Reyes Rebolledo, 2019. "On the Relationship between Economic Freedom and Output per Worker: The Case of Asia-pacific Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 9(6), pages 184-194.
    • Handle: RePEc:eco:journ1:2019-06-23
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    Cited by:

    1. Noha Emara (a) and Loreto Reyes Rebolledo (b), 2021. "Economic Freedom and Economic Performance: Does Good Governance Matter? The Case of APAC and OECD Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 46(1), pages 1-32, March.

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    More about this item

    Keywords

    APAC; Economic Freedom; Political Freedoms; Productivity; Corruption;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative

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