Economic Freedom and the Process of Economic Growth: An Empirical Analysis Based on a New Measure
This paper, relying on a conceptualization of economic freedom in terms of kinds of government actions, develops a new measure of economic freedom. However, this is not art for art’s sake; instead, it allows us to provide an explanation for how particular institutions of economic freedom enhance ec...
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| Format: | Article |
| Language: | English |
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University of Debrecen, Faculty of Economics and Business
2010-06-01
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| Series: | Competitio |
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| Online Access: | https://ojs.lib.unideb.hu/competitio/article/view/6864 |
| _version_ | 1797398305244708864 |
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| author | Judit Kapás Pál Czeglédi |
| author_facet | Judit Kapás Pál Czeglédi |
| author_sort | Judit Kapás |
| collection | DOAJ |
| description |
This paper, relying on a conceptualization of economic freedom in terms of kinds of government actions, develops a new measure of economic freedom. However, this is not art for art’s sake; instead, it allows us to provide an explanation for how particular institutions of economic freedom enhance economic development, a view upon which scholars agree. We develop two concepts related to economic freedom, namely the freedom-compatible and freedom-non-compatible institutions and use them as tools in an analysis of the process of economic growth, especially the relationship between economic freedom and long-run income. The major argument is that freedom-compatible institutions are primary determinants of income, while freedom-non-compatible institutions depend upon them and are partly the outcomes of the growth process itself, a fact which is explained by the Misesian theory of interventionism. Our regression analyses support our theoretical insights.
JEL Classification: B53, H10, O10
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| first_indexed | 2024-03-09T01:23:41Z |
| format | Article |
| id | doaj.art-a7908efaf4334b90944414a1da5a55a8 |
| institution | Directory Open Access Journal |
| issn | 1588-9645 2939-7324 |
| language | English |
| last_indexed | 2024-03-09T01:23:41Z |
| publishDate | 2010-06-01 |
| publisher | University of Debrecen, Faculty of Economics and Business |
| record_format | Article |
| series | Competitio |
| spelling | doaj.art-a7908efaf4334b90944414a1da5a55a82023-12-10T07:59:01ZengUniversity of Debrecen, Faculty of Economics and BusinessCompetitio1588-96452939-73242010-06-019110.21845/comp/2010/1/1Economic Freedom and the Process of Economic Growth: An Empirical Analysis Based on a New MeasureJudit Kapás0Pál Czeglédi1University of Debrecen Faculty of Economics and Business Administration University of Debrecen Faculty of Economics and Business Administration This paper, relying on a conceptualization of economic freedom in terms of kinds of government actions, develops a new measure of economic freedom. However, this is not art for art’s sake; instead, it allows us to provide an explanation for how particular institutions of economic freedom enhance economic development, a view upon which scholars agree. We develop two concepts related to economic freedom, namely the freedom-compatible and freedom-non-compatible institutions and use them as tools in an analysis of the process of economic growth, especially the relationship between economic freedom and long-run income. The major argument is that freedom-compatible institutions are primary determinants of income, while freedom-non-compatible institutions depend upon them and are partly the outcomes of the growth process itself, a fact which is explained by the Misesian theory of interventionism. Our regression analyses support our theoretical insights. JEL Classification: B53, H10, O10 https://ojs.lib.unideb.hu/competitio/article/view/6864economic freedominstitutionsrule of lawgovernmentinterventionalism |
| spellingShingle | Judit Kapás Pál Czeglédi Economic Freedom and the Process of Economic Growth: An Empirical Analysis Based on a New Measure Competitio economic freedom institutions rule of law government interventionalism |
| title | Economic Freedom and the Process of Economic Growth: An Empirical Analysis Based on a New Measure |
| title_full | Economic Freedom and the Process of Economic Growth: An Empirical Analysis Based on a New Measure |
| title_fullStr | Economic Freedom and the Process of Economic Growth: An Empirical Analysis Based on a New Measure |
| title_full_unstemmed | Economic Freedom and the Process of Economic Growth: An Empirical Analysis Based on a New Measure |
| title_short | Economic Freedom and the Process of Economic Growth: An Empirical Analysis Based on a New Measure |
| title_sort | economic freedom and the process of economic growth an empirical analysis based on a new measure |
| topic | economic freedom institutions rule of law government interventionalism |
| url | https://ojs.lib.unideb.hu/competitio/article/view/6864 |
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