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Economic Freedom and Government Efficiency: Recent Evidence from China

Author

Listed:
  • Shaomeng Jia

    (Mississippi State University, Department of Economics)

  • Yang Zhou

    (West Virginia University, Department of Economics)

Abstract

We investigate the effects of economic freedom (marketization) on governance efficiency defined with the newest provincial level economic indicator data (NBSC, 2017) and economic freedom data (Fan et al., 2017) from 2008 to 2014 in China. With two different measures, the results suggest that economic freedom is positively correlated with governance efficiency. Moreover, the liberalization and marketization progress in the “factors market†is the single most significant area for both governance efficiency measures, while other areas like “market intermediary & legal system†have no significant effects.

Suggested Citation

  • Shaomeng Jia & Yang Zhou, 2017. "Economic Freedom and Government Efficiency: Recent Evidence from China," Working Papers 17-26, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:17-26
    as

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    File URL: http://busecon.wvu.edu/phd_economics/pdf/17-26.pdf
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    References listed on IDEAS

    as
    1. Jiangyong Lu & Bin Xu & Xiaohui Liu, 2009. "The Effects of Corporate Governance and Institutional Environments on Export Behaviour in Emerging Economies," Management International Review, Springer, vol. 49(4), pages 455-478, September.
    2. Yang Zhou & Joshua C. Hall, 2017. "The Impact of Marketization on Entrepreneurship in China: Recent Evidence," Working Papers 17-22, Department of Economics, West Virginia University.
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    More about this item

    Keywords

    economic freedom; governance efficiency; marketization; regional economics; China;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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