Economic Growth, Economic Freedom, and Governance

Cebula, Richard and Ekstrom, Marcus (2008): Economic Growth, Economic Freedom, and Governance. Published in: Journal of International Business and Economics , Vol. 9, No. 3 (10 October 2009): pp. 146-1150.

Abstract

This exploratory study examines the impact of various forms of economic freedom and various dimensions of governance, as well as a number of economic factors, on economic growth among OECD nations. Empirical estimation finds that the natural log of per capita purchasing-power-parity adjusted real GDP in OECD nations is positively impacted by business freedom, monetary freedom, trade freedom, and property rights security. Economic growth is found to be negatively affected by perceived government corruption while being positively impacted by both control of corruption and political stability. Other findings indicate that higher unemployment rates and higher long term nominal interest rates inhibit economic growth, while net export growth enhances economic growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic growth; select economic freedoms; dimension of governance
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D78 - Positive Analysis of Policy Formulation and Implementation; K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K42 - Illegal Behavior and the Enforcement of Law; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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