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Causes and barriers to increases in economic freedom

Author

Listed:
  • Raymond J. March

    () (Texas Tech University)

  • Conrad Lyford

    (Texas Tech University)

  • Benjamin Powell

    (Texas Tech University)

Abstract

Abstract We investigate the causes of increases in economic freedom by examining a cross section of countries from 1990 to 2010 and examining factors that have previously been associated with increases in freedom alongside other factors which have been found to be important for growth. We find that higher initial GNI per capita is associated with larger subsequent increases in economic freedom and countries are less likely to improve their freedom the higher their initial level of freedom, energy exports, and ethnolinguistic fractionalization. When we test subsamples, we find that little explains changes in freedom in countries with high levels of initial freedom, initially high incomes, and that did not receive foreign aid.

Suggested Citation

  • Raymond J. March & Conrad Lyford & Benjamin Powell, 2017. "Causes and barriers to increases in economic freedom," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(1), pages 87-103, March.
  • Handle: RePEc:spr:inrvec:v:64:y:2017:i:1:d:10.1007_s12232-016-0263-2 DOI: 10.1007/s12232-016-0263-2
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    References listed on IDEAS

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    Cited by:

    1. Joshua Hall & John Levendis, 2017. "The Efficient Corruption Hypothesis and the Dynamics between Economic Freedom, Corruption, and National Income," Working Papers 17-06, Department of Economics, West Virginia University.
    2. repec:jpe:journl:1416 is not listed on IDEAS
    3. repec:eee:jeborg:v:141:y:2017:i:c:p:83-95 is not listed on IDEAS

    More about this item

    Keywords

    Economic freedom; Economic development; Ethnolinguistic fractionalization; Natural resource curse;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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