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Une décomposition de l'effet de la liberté économique sur la croissance dans les pays en développement


  • Rami Abdelkafi
  • Hatem Derbel


The lack of efficiency that characterized the economic policies of developing countries has prompted several economists to recommend a massive disengagement of the state of economic activity. Economic freedom is advanced as an alternative to development strategies more effective. Our work shows that the index of economic freedom hides the importance of its components and mask the importance of state intervention in developing countries. Through the method of Hansen, 2000, we show that for sizes of the State relating to scores above 5,956 (depending on the construction of the index of economic freedom), public investment should have a positive effect on growth.

Suggested Citation

  • Rami Abdelkafi & Hatem Derbel, 2008. "Une décomposition de l'effet de la liberté économique sur la croissance dans les pays en développement," EconomiX Working Papers 2008-19, University of Paris Nanterre, EconomiX.
  • Handle: RePEc:drm:wpaper:2008-19

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    References listed on IDEAS

    1. Hamilton, Kirk & Clemens, Michael, 1999. "Genuine Savings Rates in Developing Countries," World Bank Economic Review, World Bank Group, vol. 13(2), pages 333-356, May.
    2. Carlsson, Fredrik & Lundstrom, Susanna, 2002. "Economic Freedom and Growth: Decomposing the Effects," Public Choice, Springer, vol. 112(3-4), pages 335-344, September.
    3. John Mukum Mbaku, 2003. "Entrenching Economic Freedom in Africa," Cato Journal, Cato Journal, Cato Institute, vol. 23(2), pages 217-225, Fall.
    4. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    5. Bengtsson, Mikael & Berggren, Niclas & Jordahl, Henrik, 2005. "Trust and Growth in the 1990s - A Robustness Analysis," Working Paper Series 2005:1, Uppsala University, Department of Economics.
    6. James D. Gwartney & Randall G. Holcombe & Robert A. Lawson, 2004. "Economic Freedom, Institutional Quality,and Cross-Country Differences in Income and Growth," Cato Journal, Cato Journal, Cato Institute, vol. 24(3), pages 205-233, Fall.
    7. Chen, Sheng-Tung & Lee, Chien-Chiang, 2005. "Government size and economic growth in Taiwan: A threshold regression approach," Journal of Policy Modeling, Elsevier, vol. 27(9), pages 1051-1066, December.
    8. Hildegunn Ekroll Stokke, 2005. "Productivity Growth in Backward Economies and the Role of Barriers to Technology Adoption," Working Paper Series 4905, Department of Economics, Norwegian University of Science and Technology.
    9. Alfredo Esposto & Peter Zaleski, 1999. "Economic Freedom and the Quality of Life: An Empirical Analysis," Constitutional Political Economy, Springer, vol. 10(2), pages 185-197, June.
    10. Morrissey, Oliver, 2002. "Recipient Governments' Willingness and Ability to Meet Aid Conditionality: The Effectiveness of Aid Finance and Conditions," WIDER Working Paper Series 105, World Institute for Development Economic Research (UNU-WIDER).
    11. Richard L. Stroup, 2003. "Economic freedom and environmental quality," Proceedings, Federal Reserve Bank of Dallas, issue Oct, pages 73-90.
    12. Heckelman, Jac C & Stroup, Michael D, 2002. "Which Economic Freedoms Contribute to Growth? Reply," Kyklos, Wiley Blackwell, vol. 55(3), pages 217-220.
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    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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