Does Economic Freedom impact Economic growth: Decomposing the Effects for Bosnia and Herzegovina
DOI:
https://doi.org/10.7251/ACE1421009BKeywords:
Economic Freedom, the Index of Ecenomic Freedom, economic growthAbstract
In this paper we will present the results of our survey on Economic Freedom, and impact of its individual categories on economic growth in the Bosnia and Herzegovina. To measure economic freedom we will use The Index of Economic Freedom published by the Heritage Foundation in cooperation with the Wall Street Journal. We find that economic freedom have a positive impact on GDP growth. Our result also indicates that individual categories of the Economic Freedom have a different impact on GDP growth.
References
Adkins, L. C., Ronald, L. M. & Andreas, S. (2002). Institutions, Freedom, and Technical Efficiency. Southern Economic Journal, 69 (July), 92–108.
Aghion, P. & Howitt, P. (1998). Endogenous Growth Theory. Massachustets : The MIT Press.
Ali, A. W. M. C. (2001). Political Regimes, Economic Freedom, Institutions, and Growth. Journal of Public Finance and Public Choice 19(1), 3–22.
Ali, A. (1997). Economic Freedom, Democracy, and Growth. Journal of Private Enterprise, 13 (fall), 1–20.
Ali, A. Mark, W. C. (2002). Institutional Distortions, Economic Freedom, and Growth. Cato Journal 21, no. 3: 415-426. Accessed 20.06.14: http://www.freetheworld.com/papers/Ali_and_Crain.pdf
Ayal, E. B., Georgios, K. (1998). Components of Economic Freedom and Growth: An Empirical Study. Journal of Developing Areas, 32(3), 327–38.
Baletić, Z. i Jelena, B. (2007). Indices of Economic Freedom as a Measure of Croatia’s Institutional Convergence to the EU with English Summary. Ekonomski pregled, 58(12), 804-825.
Barro, R. J. (1991). Economic growth in a cross section of countries. The Quarterly Journal of Economics, 106, 407-443.
Barro, R. J. (1996): Democracy and growth. Journal of Economic Growth, v1(1, Mar), 1-27
Bengtsson, M. &Jordahl, H. (2005). Does free trade really reduce growth? Further testing using the economic freedom index. Public Choice, 122, 99-114.
Berggren, N. (2003). The Benefits of Economic Freedom: A Survey. The Independent Review, 8 (2), 193-211.
Carlsson, F. & Susanna, L. (2002). Economic Freedom and Growth: Decomposing the Effects. Public Choice, 112(3–4), 335–44.
Dawson, J. W. (1998): Forthcoming. Causality in the Freedom-Growth Relationship. European Journal of Political Economy; Vol. 19: 479-495
Derbel, H. Abdelkaf, R. Chkir, A. (2011). The Effects of Economic Freedom Components on Economic Growth: An Analysis with a Treshold Model, Journal of Politics and Low, Vol. 4. No. 2. 49-60;
Easton, S. T. & Michael, A. W. (1997). Income, Growth, and Economic Freedom. American Economic Review, 87(2), 328–32.
Gwartney, J. G. Robert, A. L. & Randall, G. H. (1999). Economic Freedom and the Environment for Economic Growth. Journal of Institutional and Theoretical Economics, 155(4), 1–21.
Gwartney, J. G. & Robert A. L. (2002). Economic Freedom of the World: 2002 Annual Report. Vancouver: Fraser Institute.
Haan, J. & Jan-Egbert, S. (2001). How Robust Is the Relationship Between Economic Freedom and Economic Growth? Applied Economics, 33(7), 839–44.
Hanson, J. R. II. (2000). Prosperity and Economic Freedom. The Independent Review, 4(4), 525–31.
Hayek, F. A. (1994). The Road to Serfdom. Chicago: Unioversity of Chicago Press.
Heckelman, J. C. (2000). Economic Freedom and Economic Growth: A Short-Run Causal Investigation. Journal of Applied Economics, 3, 1, 71–91.
Heckelman, J. C. & Michael, D. S. (2000). Which Economic Freedoms Contribute to Growth? Kyklos, 53(4), 527–44.
Heritage Foundation. (2014). Explore the data. Accessed 20.06.2014.: http://www.heritage.org/index/explore
Kešeljević, A. (2007). Indexes of Economic Freedom--an Outline and Open Issues. Proceedings of Rijeka School of Economics: Journal of Economics and Business, 25, 2, 223-243.
Miler, T. A., Kim, B. A. & Holmes, R. K. (2014). 201 Index of the Economic Freedom. Washington, DC: The Heritage Foundation and Dow Jones & Company, Inc.
Pitlik, H. (2002). Te Path of Liberalization and Economic Growth. Kyklos, 55(1), 57–80.
Pucar, S. & Borovic, Z. (2013). Measuring Total Factor productivity: Accounting for cross country differences in income per capita. ACTA ECONOMICA,19, 75-95.
Scully, G. (2002). Economic Freedom, Government Policy, and the Trade-Off Between Equity and Economic Growth. Public Choice, 113, 1–2, 77–96.
Weede, E. & Sebastian, K. (2002). The Impact of Intelligence and Institutional Improvements on Economic Growth. Kyklos, 55(3), 361–80.
Wu, W. & Otto, A. D. (1999). The Two Freedoms, Economic Growth and Development: An Empirical Study. Public Choice, 100, 1–2, 39–64.
World Economic Outlook Database. (2014). Data and statistics. Accessed 20.06.2014.: http://www.imf.org/external/pubs/f/weo/2014/01/weodata/index.aspx
Downloads
Published
Issue
Section
License
Copyright (c) 2014 University of Banja Luka, Faculty of Economics
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
