Role of economic and political freedom in the emergence of global middle class

Yener Kandogan and Scott D. Johnson

International Business Review, 2016, vol. 25, issue 3, 711-725

Abstract: The study examines the role of the economic freedoms such as regulatory efficiency, open markets and limited markets, political freedom and rule of law in the growth of the global middle class through international business activity in 34 emerging markets during the period of 1994–2011. The analysis suggests that some dimensions of freedom are more critical than others in making these markets attractive locations for international business and this in turn leads to domestic growth and thus growth of the middle class in these countries. The results also reveal the existence of a feedback loop, whereby the growing middle class becomes a driving force for further expansion of international business activity and economic growth.

Keywords: Emerging middle class; Foreign direct investment; Freedom; International trade; Political economy (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:25:y:2016:i:3:p:711-725

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DOI: 10.1016/j.ibusrev.2015.02.005

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