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Economic Freedom and Economic Growth in Mena Countries

Author

Listed:
  • Hossein Panahi

    (Assistant Professor, Department of Economics, University of Tabriz, Iran)

  • Ahmad Assadzadeh

    (Assistant Professor, Dept. of Economics, University of Tabriz, Iran)

  • Ramiar Refaei

    (Lecturer in Economics, University of PayameNoor, Baneh, Iran)

Abstract

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.

Suggested Citation

  • Hossein Panahi & Ahmad Assadzadeh & Ramiar Refaei, 2014. "Economic Freedom and Economic Growth in Mena Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 105-116, January.
  • Handle: RePEc:asi:aeafrj:2014:p:105-116
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    References listed on IDEAS

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    Cited by:

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    2. Clive E. Coetzee & Ewert P. J. Kleynhans, 2017. "Economic Freedom and Economic Growth in South Africa," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 15(2 (Summer), pages 169-185.
    3. Muhammad Nadeem & Yang Jun & Tahseen Akhtar & Wanlu Dong & Momna Niazi, 2019. "Does Really Economic Freedom Matter for Growth in South Asia? Empirical Evidences from Pre-Economic Crises and Post-Economic Crises Period," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 52-63, January.
    4. Renato Santiago & José Alberto Fuinhas & António Cardoso Marques, 2020. "The impact of globalization and economic freedom on economic growth: the case of the Latin America and Caribbean countries," Economic Change and Restructuring, Springer, vol. 53(1), pages 61-85, February.

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