Economic Growth and Freedom: A Cross-Country Analysis
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Authors
Wu, Congsheng
Issue Date
2021-04-09
Type
Other
Language
en_US
Keywords
Economic development , Economic growth
Alternative Title
Abstract
Understanding the nature and causes of economic progress has been a challenge to development economists. The classic theory sees the economy as a production machine that transforms labor, natural resources and capital into output. In development economics, attention has therefore shifted to how and what degree economies succeed in realizing their potential. Development economists have started to take an interest in economic and political institutions. They are interested in two fundamental questions: How do different institutions affect economic development and growth? And how and why do good institutions arise? Recent empirical work has analyzed country-level GDP data and various measures of legal, financial, and political institutions to uncover which institutions are associated with more rapid economic growth. This study contributes to this line of research by investigating the association between economic freedom, economic growth, and economic wellbeing.