Next Article in Journal
Nonlinear Monetary Policy Rules: An Essay in the Comparative Study on Egyptian and Tunisian Central Banks
Previous Article in Journal
Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries
Article Menu

Export Article

Open AccessArticle
Economies 2016, 4(2), 5;

Impact of Economic Freedom on the Growth Rate: A Panel Data Analysis

Dillard University, New Orleans, LA 70122, USA
Scott College of Business, Indiana State University, Terre Haute, IN 47809, USA
Author to whom correspondence should be addressed.
Academic Editor: Ralf Fendel
Received: 6 December 2015 / Revised: 16 March 2016 / Accepted: 21 March 2016 / Published: 28 March 2016
Full-Text   |   PDF [220 KB, uploaded 28 March 2016]


This study looks at some non-conventional determinants of economic growth, with the help of the newly developed economic freedom index datasets of the Heritage Foundation/Wall Street Journal(HF/WSJ), which is a cumulative index derived from several sub-indices (trade freedom index, financial freedom, labor freedom, business and fiscal freedom index). The cumulative economic freedom index show us how open and business friendly a country is. The sub-indices show us openness across different sector of the economy, for example, the financial sector or the trade sector etc. Traditional neo-classical economic theories have explained economic growth looking at the supply of labor, capital and state of technology, with little attention being paid to institutional factors. The study presents evidence based on two panel data-sets. The first set consists of 186 countries over the period 2013, 2014 and 2015 that show institutional factors play a crucial role in economic growth. A second data-set with data for 57 countries for the period 2004–2014 also show a positive impact on the index on the growth rate of per capita GDP. View Full-Text
Keywords: economic growth; freedom index; GDP; panel data economic growth; freedom index; GDP; panel data
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

Supplementary material


Share & Cite This Article

MDPI and ACS Style

Hussain, M.E.; Haque, M. Impact of Economic Freedom on the Growth Rate: A Panel Data Analysis. Economies 2016, 4, 5.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Economies EISSN 2227-7099 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top