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Economic freedom and growth, income, investment, and inequality: A quantitative summary of the literature

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  • Robert Lawson
  • Vincent Miozzi
  • Meg Tuszynski

Abstract

This study examines the published estimates on the relationship between economic freedom, as measured by the Economic Freedom of the World (EFW) index, and measures of growth, income, investment, and inequality. We obtained 696 point estimates for economic freedom‐growth from 54 articles, 386 estimates for economic freedom‐income from 23 articles, 343 estimates for economic freedom‐investment from 32 articles, and 759 estimates for economic freedom‐inequality from 26 articles. The published estimates support the view that economic freedom is positively related to growth, income, and investment. The level of economic freedom appears to be simply unrelated to inequality, though increases in economic freedom may correlate with higher inequality.

Suggested Citation

  • Robert Lawson & Vincent Miozzi & Meg Tuszynski, 2024. "Economic freedom and growth, income, investment, and inequality: A quantitative summary of the literature," Southern Economic Journal, John Wiley & Sons, vol. 90(4), pages 1099-1135, April.
    • Handle: RePEc:wly:soecon:v:90:y:2024:i:4:p:1099-1135
    DOI: 10.1002/soej.12680
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    References listed on IDEAS

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    1. 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.
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    7. Jakob De Haan & Jan-Egbert Sturm, 2007. "Handling Economic Freedom in Growth Regressions: A Reply to Cole and Lawson," Econ Journal Watch, Econ Journal Watch, vol. 4(1), pages 79-82, January.
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