Lessons from the Experience of OECD Nations on Macroeconomic Growth and Economic Freedom, 2004-2008

International Review of Economics, Vol. 59, Issue 3, pp. 231 - 243

Posted: 20 Mar 2016

See all articles by J. R. Clark

J. R. Clark

The University of Tennessee at Chattanooga

Richard J. Cebula

Armstrong Atlantic State University; Jacksonville University (Florida)

Date Written: August 15, 2012

Abstract

This study empirically investigates the impact on per capita real economic growth of each of the ten measures of economic freedom computed annually by the Heritage Foundation. Within the context of the Random Effects Model, panel least squares estimations using a 5-year panel (2004 through 2008) dataset for the OECD nations as a group reveal that the percentage growth rate in the purchasing-powerparity adjusted per capita real GDP for OECD nations was, at the 5% statistical significance level or better, an increasing function of at least seven of the ten economic freedom measures. The results underscore the critical role that economic freedom plays in a nation’s economic growth and prosperity and the importance of pursuing policies that are consistent with increasing economic freedom.

Keywords: Economic freedom, percentage real per capita GDP growth, public policy

JEL Classification: P10, P16, E60, F43, H61

Suggested Citation

Clark, Jeff R. and Cebula, Richard J., Lessons from the Experience of OECD Nations on Macroeconomic Growth and Economic Freedom, 2004-2008 (August 15, 2012). International Review of Economics, Vol. 59, Issue 3, pp. 231 - 243 . Available at SSRN: https://ssrn.com/abstract=2749694

Jeff R. Clark (Contact Author)

The University of Tennessee at Chattanooga ( email )

Department of Economics
Suite 313 Fletcher Hall
Chattanooga, TN 37403-2598
United States

Richard J. Cebula

Armstrong Atlantic State University ( email )

11935 Abercorn Street
Savannah, GA 31419
912-921-3781 (Phone)
912-921-3782 (Fax)

Jacksonville University (Florida) ( email )

Jacksonville, FL 32211
United States

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