The Impact of Economic Freedom on Economic Growth in the SADC: An Individual Component Analysis
AbstractThe SADC is attempting to achieve development and economic growth. This paper investigates the relationship between economic freedom â€“ in aggregate and on an individual component basis â€“ on economic growth in the SADC. The annual data for 13 SADC countries from 2000 to 2009 are used to construct a generalised method of moments, dynamic panel-data model. When cross-sectional dependence of the error term, individual- and time-specific effects are controlled, economic freedom and GDP per capita are positively related and freedom Granger-causes growth. All five individual components are highly significant and are positively related to growth; however, the magnitude of the elasticity parameters varies. The causality among the individual freedom components indicates that linkages exist between certain of these components.
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Bibliographic InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 327.
Length: 21 pages
Date of creation: 2013
Date of revision:
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Economic freedom; economic growth; SADC; causality; elasticity;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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