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National Competitive Advantage and the Roles of Economic and Political Freedom: Evidence from Hong Kong

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  • Edmund R. Thompson

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Abstract

The equivocal interrelationships between economic performance and the institutions of, respectively, economic and political freedom are examined using data from firms operating in Hong Kong, an economy where both an erstwhile paramount international business reputation for competitiveness and the institutional basis on which it was predicated have come into question in recent years. It is hypothesized that (i) both economic and political freedom declines will be associated with a proxy for future economic performance, competitiveness decline, but that (ii) the correlation of economic freedom declines with competitiveness decline will be mediated by political freedom declines. Hierarchical regression analyses tend to support these hypotheses, although results vary by firm origin.

Suggested Citation

  • Edmund R. Thompson, 2004. "National Competitive Advantage and the Roles of Economic and Political Freedom: Evidence from Hong Kong," Public Choice, Springer, vol. 120(3_4), pages 401-437, September.
  • Handle: RePEc:kap:pubcho:v:120:y:2004:i:3_4:p:401-437
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    Cited by:

    1. Sang-Heui Lee & Jay Wyk, 2015. "National institutions and logistic performance: a path analysis," Service Business, Springer;Pan-Pacific Business Association, vol. 9(4), pages 733-747, December.

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