@article{ART001999986},
author={Kim, Youngshin},
title={The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform},
journal={Journal of Regional Studies and Development},
issn={1738-3846},
year={2015},
volume={24},
number={1},
pages={131-161}
TY - JOUR
AU - Kim, Youngshin
TI - The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform
JO - Journal of Regional Studies and Development
PY - 2015
VL - 24
IS - 1
PB - Institute for Poverty Alleviation and International Development: IPAID
SP - 131
EP - 161
SN - 1738-3846
AB - This paper investigates the effects of institutional factors associated with economic freedom on economic growth and prosperity. In particular, the Index of Economic Freedom of Heritage Foundation is used to analyze the growth of GDP per capita. The index is composed of the 10 measured aspects of economic freedom, which is grouped into four broad categories: rule of law, government size, regulatory efficiency, and market openness. To examine the relationship between the 10 measured aspects of economic freedom and GDP per capita, I provide estimates of panel regressions for 156 countries from 1995 to 2010. One finding is that the constituents of the Index of Economic Freedom positively affect the growth of economy although the effect of variables varies with the growth stages. Specifically, the effect of freedom from corruption on the growth of GDP per capita in the group of high income countries is much more positive than that in the group of low income countries. This finding indicates that economic freedom induces resources to be more efficiently used and invigorates incentive of economic agents, resulting that innovative capabilities can be strengthened. Therefore, this paper implies that rent-seeking activities generating needless social costs can be shrunk with less regulations and more market openness which provide more opportunities to create a variety of value added items and services.
KW - economic growth;index of economic freedom;corruption;institutional reform;regulation
DO -
UR -
ER -
Kim, Youngshin. (2015). The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform. Journal of Regional Studies and Development, 24(1), 131-161.
Kim, Youngshin. 2015, "The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform", Journal of Regional Studies and Development, vol.24, no.1 pp.131-161.
Kim, Youngshin "The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform" Journal of Regional Studies and Development 24.1 pp.131-161 (2015) : 131.
Kim, Youngshin. The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform. 2015; 24(1), 131-161.
Kim, Youngshin. "The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform" Journal of Regional Studies and Development 24, no.1 (2015) : 131-161.
Kim, Youngshin. The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform. Journal of Regional Studies and Development, 24(1), 131-161.
Kim, Youngshin. The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform. Journal of Regional Studies and Development. 2015; 24(1) 131-161.
Kim, Youngshin. The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform. 2015; 24(1), 131-161.
Kim, Youngshin. "The Effect of Economic Freedom on Economic Growth: from the Perspective of Institutional Reform" Journal of Regional Studies and Development 24, no.1 (2015) : 131-161.
