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On Testing the Connection between Economic Freedom and Growth

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  • Robert A. Lawson

Abstract

Jakob De Haan, Susanna Lundström, and Jan-Egbert Sturm have written a valuable survey of the literature that uses the Gwartney and Lawson economic freedom (EFW) index. Their discussion of the index’s theoretical underpinnings and methodological ins and outs itself should be useful to scholars interested in the field. While DLS accurately describe the mechanics of the construction of the EFW index and the econometric literature that has found a link between economic freedom and economic growth, I find myself in disagreement with some of their commentary. This reply in part will address these issues.

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Bibliographic Info

Article provided by Econ Journal Watch in its journal Econ Journal Watch.

Volume (Year): 3 (2006)
Issue (Month): 3 (September)
Pages: 398-406

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Handle: RePEc:ejw:journl:v:3:y:2006:i:3:p:398-406

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Related research

Keywords: Economic Freedom; Economic Growth; Liberalization;

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Cited by:
  1. Saurav Roychoudhury & Robert A. Lawson, 2010. "Economic freedom and sovereign credit ratings and default risk," Journal of Financial Economic Policy, Emerald Group Publishing, Emerald Group Publishing, vol. 2(2), pages 149-162, June.
  2. Keef, Stephen P. & Khaled, Mohammed & Zhu, Hui, 2009. "The dynamics of the Monday effect in international stock indices," International Review of Financial Analysis, Elsevier, Elsevier, vol. 18(3), pages 125-133, June.
  3. Henryk Gurgul & Łukasz Lach, 2011. "The Nexus between Improvements in Economic Freedom and Growth: Evidence from CEE Countries in Transition," Central European Journal of Economic Modelling and Econometrics, CEJEME, CEJEME, vol. 3(3), pages 133-168, September.
  4. John W. Dawson, 2007. "The Empirical Institutions-Growth Literature: Is Something Amiss at the Top?," Econ Journal Watch, Econ Journal Watch, Econ Journal Watch, vol. 4(2), pages 184-196, May.
  5. repec:ebl:ecbull:v:15:y:2008:i:18:p:1-6 is not listed on IDEAS
  6. Judit Kapás & Pál Czeglédi, 2007. "Economic Freedom: Theory First, Empiricism After," ICER Working Papers, ICER - International Centre for Economic Research 10-2007, ICER - International Centre for Economic Research.
  7. Gurgul, Henryk & Lach, Łukasz, 2011. "The nexus between economic freedom and growth: Evidence from CEE countries in transition," MPRA Paper 37434, University Library of Munich, Germany.
  8. Joshua Hall & Robert Lawson, 2008. "Theory and evidence on economic freedom and economic growth: A comment," Economics Bulletin, AccessEcon, vol. 15(18), pages 1-6.

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