Economic Freedom and Economic Growth in Mena Countries
Most studies of the relationship between economic freedom and growth of GDP have found a positive correlation. One problem in this area is the choice of measure of economic freedom. A single measurement does not reflect the complex economic environment and a highly aggregated index makes it difficult to draw policy conclusions. This paper attempts to answer the question: How does economic freedom impact economic growth? Using data from 13 selected MENA countries over the period of 2000 to 2009, this paper investigates the relationship between economic freedom and economic growth. The results of panel data analysis show that economic institutions, specifically economic freedom, play a significant role in economic development independently and the overall index of economic freedom is positively correlated with growth. It is found that economic freedom does matter for growth. This does not mean that increasing economic freedom, defined in general terms, is good for economic growth since some of the categories in the index are insignificant and some of the significant variables have negative effects.
Volume (Year): 4 (2014)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan|
Web page: http://www.aessweb.com/
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Torstensson, Johan, 1994. "Property Rights and Economic Growth: An Empirical Study," Kyklos, Wiley Blackwell, vol. 47(2), pages 231-47.
- Sala-i-Martin, Xavier, 1997.
"I Just Ran Two Million Regressions,"
American Economic Review,
American Economic Association, vol. 87(2), pages 178-83, May.
- Berggren, Niclas & Jordahl, Henrik, 2003.
"Does free trade really reduce growth? Further testing using the economic freedom index,"
Ratio Working Papers
25, The Ratio Institute.
- Niclas Berggren & Henrik Jordahl, 2005. "Does free trade really reduce growth? Further testing using the economic freedom index," Public Choice, Springer, vol. 122(1), pages 99-114, January.
- Berggren, Niclas & Jordahl, Henrik, 2003. "Does Free Trade Really Reduce Growth? Further Testing Using the Economic Freedom Index," Working Paper Series 2003:26, Uppsala University, Department of Economics.
- de Haan, Jakob & Sturm, Jan-Egbert, 2000.
"On the relationship between economic freedom and economic growth,"
European Journal of Political Economy,
Elsevier, vol. 16(2), pages 215-241, June.
- Haan, Jakob de & Sturm, Jan-Egbert, 1999. "On the relationship between economic freedom and economic growth," CCSO Working Papers 199903, University of Groningen, CCSO Centre for Economic Research.
- De Vanssay, Xavier & Spindler, Z A, 1994. "Freedom and Growth: Do Constitutions Matter?," Public Choice, Springer, vol. 78(3-4), pages 359-72, March.
- Jakob de Haan & Susanna Lundstroem & Jan-Egbert Sturm, 2005.
"Market oriented institutions and policies and economic growth: A critical survey,"
TWI Research Paper Series
5, Thurgauer Wirtschaftsinstitut, Universitï¿½t Konstanz.
- 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.
- James D. Gwartney & Robert A. Lawson & Randall G. Holcombe, 1999. "Economic Freedom and the Environment for Economic Growth," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(4), pages 643-, December.
- Sadequl Islam, 1996. "Economic freedom, per capita income and economic growth," Applied Economics Letters, Taylor & Francis Journals, vol. 3(9), pages 595-597.
- Carlsson, Fredrik & Lundström, Susanna, 2001.
"Economic Freedom and Growth:Decomposing the Effects,"
Working Papers in Economics
33, University of Gothenburg, Department of Economics.
- Carlsson, Fredrik & Lundstrom, Susanna, 2002. "Economic Freedom and Growth: Decomposing the Effects," Public Choice, Springer, vol. 112(3-4), pages 335-44, September.
- Knowles, Stephen & Garces-Ozanne, Arlene, 2003.
"Government Intervention and Economic Performance in East Asia,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 51(2), pages 451-77, January.
- Knowles, Stephen & Garces-Ozanne, Arlene, 2003. "Government Intervention and Economic Performance in East Asia," Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 451-77, January.
- Sam Green & Andrew Melnyk & Dennis Powers, 2002. "Is economic freedom necessary for technology diffusion?," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 907-910.
- Levine, Ross & Renelt, David, 1991.
"A sensitivity analysis of cross-country growth regressions,"
Policy Research Working Paper Series
609, The World Bank.
- Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September.
- repec:dgr:rugccs:199903 is not listed on IDEAS
- de Haan, Jakob & Siermann, Clemens L J, 1998. "Further Evidence on the Relationship between Economic Freedom and Economic Growth," Public Choice, Springer, vol. 95(3-4), pages 363-80, June.
When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:2014:p:105-116. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qazi Muhammad Imran)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.