Economic Freedom Verses Economic Growth: Cross Countries Analysis in the form of ARDL Approach
Journal Title: Asian Economic and Financial Review - Year 2011, Vol 1, Issue 1
Abstract
The generous theoretical and empirical debates are available on institutionalfreedom and economic growth, but unsuccessful to facilitate stationaryconclusion regarding the nature of connection. It is still confusing that eithereconomic freedom cause economic growth or economic growth widens thefoundation for economic freedom. The finale will be more puzzled if the analysisbased on different kinds of economies. The aim of this study is to probe thenature of relationships between economic freedom and economic growth indifferent kinds of economies. For statistical evidence autoregressive distributedlag (ARDL) approach is employed by using the data of 96 countries [HighIncome (29), Upper Middle Income (18), Lower Middle Income (26) and LowerIncome (23)]. The empirical results indicate bilateral and robust relationshipsbetween economic freedom and economic growth in high income and lowermiddle income countries, while in upper middle income and low incomecountries, economic freedom causes economic growth in unilateral connection.
Authors and Affiliations
Khalid Mahmood| Ph.D student department of Economics, Bahauddin Zakariya University Multan Pakistan, Toseef Azid| Professor of Economics, Faculty of Financial and Administrative Sciences Taibah University Madinah, Saudi Arabia.
Keywords
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