IDEAS home Printed from https://ideas.repec.org/a/eme/jespps/jes-12-2017-0378.html
   My bibliography  Save this article

Economic freedom and trade flows

Author

Listed:
  • Belay Seyoum
  • Juan Ramirez

Abstract

Purpose - Economic freedom is the fundamental right of every person in a free society to control his/her own labor and property without government intervention beyond what is necessary to protect and maintain freedom itself. The purpose of this paper is to examine the association between economic freedom, inward foreign direct investment (FDI) and trade flows. Design/methodology/approach - The authors test a moderated mediation model of the effects of economic freedom on trade flows with the objective of exploring the mediation effects of FDI and the moderating effects of government stability. Findings - Based on a sample of 155 countries from different geographical areas, the study shows that economic freedom is associated with inward FDI, which, in turn, predicted trade flows. Furthermore, government stability moderated the relationship between economic freedom and FDI. Originality/value - This study goes beyond the traditional focus on the macro determinants of trade flows and explores the link between economic freedom and trade flows, and the roles of inward FDI and political stability in the context of this relationship. It also provides a novel methodological approach to examine this relationship.

Suggested Citation

  • Belay Seyoum & Juan Ramirez, 2019. "Economic freedom and trade flows," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(4), pages 985-1006, August.
    • Handle: RePEc:eme:jespps:jes-12-2017-0378
    DOI: 10.1108/JES-12-2017-0378
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JES-12-2017-0378/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JES-12-2017-0378/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JES-12-2017-0378?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mazouz, Khelifa & Wood, Geoffrey & Yin, Shuxing & Zhang, Mao, 2021. "Comprehending the outward FDI from Latin America and OCED: A comparative perspective," International Business Review, Elsevier, vol. 30(5).
    2. Zhike Lv & María Rodríguez-García & Javier Sendra-García, 2021. "Does institutional quality affect the level of entrepreneurial success differently across the entrepreneurship distribution?," Review of Managerial Science, Springer, vol. 15(4), pages 937-955, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jespps:jes-12-2017-0378. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.