The Short-Run Consequences of Economic Freedom Erosion on Growth and Institutions in Latin America: An Unorthodox Experimental Review for the XXI Century

34 Pages Posted: 18 Apr 2022

See all articles by Rafael A Acevedo

Rafael A Acevedo

IEI - Creighton University; Econintech

Maria Lorca-Susino

University of Miami

Date Written: January 4, 2022

Abstract

Between 2000 and 2019 Latin American governments have increased and decreased economic freedom in a continuous cycle. Combining differences in the erosion of economic freedom with differences in economic growth and a set of institutional variables, for a sample of 19 Latin American countries, results suggest that for each percentage point that a country erodes economic freedom, the following year, its economic growth rate is between 0.3 to 1.6 percentage points lower, and suffers a worsening of institutions such as democracy, corruption, transparent laws, censorship effort media, and judicial constraints in comparison with countries that did not erode it.

Keywords: economic freedom, economic growth, institutions, Latin American

JEL Classification: O43; E020; O54

Suggested Citation

Acevedo, Rafael A and Lorca-Susino, Maria, The Short-Run Consequences of Economic Freedom Erosion on Growth and Institutions in Latin America: An Unorthodox Experimental Review for the XXI Century (January 4, 2022). Available at SSRN: https://ssrn.com/abstract=4060389 or http://dx.doi.org/10.2139/ssrn.4060389

Rafael A Acevedo (Contact Author)

IEI - Creighton University ( email )

2500 California St.
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Econintech ( email )

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Venezuela

HOME PAGE: http://https://www.econintech.org

Maria Lorca-Susino

University of Miami ( email )

P.O. Box 248126
Coral Gables, FL 33124-6550
United States

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