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Economic freedom, per capita income and economic growth

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  • Sadequl Islam

Abstract

Based on cross-section data, this paper explores the relationship between economic freedom and the economic performance of low, middle and high income countries. The regression results show that there is a direct relationship between the economic freedom index and per capita income in low income countries and all countries as a whole. The evidence also indicates that there is a direct relationship between the economic freedom index and the growth rate of per capita income in high income countries and all countries as a whole.

Suggested Citation

  • Sadequl Islam, 1996. "Economic freedom, per capita income and economic growth," Applied Economics Letters, Taylor & Francis Journals, vol. 3(9), pages 595-597.
  • Handle: RePEc:taf:apeclt:v:3:y:1996:i:9:p:595-597
    DOI: 10.1080/135048596356032
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    1. repec:spr:soinre:v:133:y:2017:i:2:d:10.1007_s11205-016-1389-z is not listed on IDEAS
    2. Carlsson, Fredrik & Lundström, Susanna, 2000. "The Effects of Economic and Political Freedom on CO2 Emissions," Working Papers in Economics 29, University of Gothenburg, Department of Economics, revised 21 Feb 2003.
    3. Krieger, Tim & Meierrieks, Daniel, 2016. "Political capitalism: The interaction between income inequality, economic freedom and democracy," European Journal of Political Economy, Elsevier, vol. 45(C), pages 115-132.
    4. Nathan J. Ashby, 2007. "Economic Freedom and Migration Flows between U.S. States," Southern Economic Journal, Southern Economic Association, vol. 73(3), pages 677-697, January.
    5. Leone Leonida & Dario Maimone Ansaldo Patti & Pietro Navarra, 2013. "Testing the Political Replacement Effect: A Panel Data Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(6), pages 785-805, December.
    6. repec:ksp:journ2:v:4:y:2017:i:3:p:343-344 is not listed on IDEAS
    7. Kiliç, Cuneyt & Arica, Feyza, 2014. "Economic Freedom, Inflation Rate and their Impact on Economic Growth: A Panel Data Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 160-176, March.
    8. Falguni Pattanaik & Narayan Nayak, 2014. "Economic freedom and economic growth in India: What is the empirical relationship?," Economic Change and Restructuring, Springer, vol. 47(4), pages 275-298, November.
    9. repec:ris:ecoint:0797 is not listed on IDEAS
    10. de Haan, Jakob, 2003. "Economic freedom: editor's introduction," European Journal of Political Economy, Elsevier, vol. 19(3), pages 395-403, September.
    11. 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, April.
    12. 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.
    13. Hakan SARIBAS, 2010. "Economic Freedom And Economic Well-Being: A Granger Causality Analysis Of 49 Countries, 1995–2004," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    14. Doucouliagos, Chris & Ulubasoglu, Mehmet Ali, 2006. "Economic freedom and economic growth: Does specification make a difference?," European Journal of Political Economy, Elsevier, vol. 22(1), pages 60-81, March.
    15. Kimlong Chheng, 2005. "How Do Economic Freedom and Investment Affect Economic Growth?," Macroeconomics 0509021, EconWPA.
    16. Knedlik, Tobias & Kronthaler, Franz, 2006. "Forced to Freedom? Empirical Relations between Aid and Economic Freedom," IWH Discussion Papers 8/2006, Halle Institute for Economic Research (IWH).
    17. Georges Harb, 2017. "Institutions and Growth in the Arab and Middle Eastern Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 365-376.
    18. Erdem Ekrem & Tugcu Can Tansel, 2012. "New Evidence on the Relationship Between Economic Freedom and Growth: A Panel Cointegration Analysis for The Case of OECD," Global Economy Journal, De Gruyter, vol. 12(3), pages 1-18, September.

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