Convergence Analysis on Ten Sub-Indexes of Economic Freedom

International Journal of Public Policy (2015), Vol. 11, No. 1/2/3

35 Pages Posted: 24 Mar 2014 Last revised: 29 Jul 2017

See all articles by Yu Sang Chang

Yu Sang Chang

Gachon University - College of Business and Economics

Youngsoo Kim

Soongsil University

JiHye Anna Kim

Soongsil University

Date Written: March 24, 2014

Abstract

The purpose of this paper is to examine the transition of economic freedom indexes themselves among countries in the world instead of their economic effect. The three central questions of this study are: Do economic freedom sub-indexes converge? Do some sub-indexes of economic freedom display more clear-cut convergence when their index points are increasing over time? Which types of economic sub-indexes display faster rate of convergence? We examine these questions for individual components or sub-indexes of economic freedom. Analyses of sub-indexes of economic freedom are critical because each of these individual sub-indexes determines independently final value of the overall index. The answer to the first question varies by each specific sub-index. In particular, it would be misleading to draw any conclusion about individual sub-indexes from the convergence pattern of the overall index. The answer to the second question is that countries with increasing index points display much more clear-cut convergence. As for the third question, those sub-indexes receiving high index points from large number of countries exhibit faster rate of convergence. Several policy implications from this study are discussed in conclusion.

Keywords: Economic Freedom Indexes, Sigma convergence, Beta convergence, Sub-indexes

JEL Classification: C43, O47, P11, P41

Suggested Citation

Chang, Yu Sang and Kim, Youngsoo and Kim, JiHye Anna, Convergence Analysis on Ten Sub-Indexes of Economic Freedom (March 24, 2014). International Journal of Public Policy (2015), Vol. 11, No. 1/2/3. Available at SSRN: https://ssrn.com/abstract=2413367 or http://dx.doi.org/10.2139/ssrn.2413367

Yu Sang Chang (Contact Author)

Gachon University - College of Business and Economics ( email )

Korea

Youngsoo Kim

Soongsil University ( email )

511, Sangdo-dong, Dongjak-gu
Seoul
Korea, Republic of (South Korea)

JiHye Anna Kim

Soongsil University ( email )

369 Sangdo-ro, Dongjak-Gu
Seoul, Seoul 06978
Korea, Republic of (South Korea)

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