Economic Freedom and Government Efficiency: Recent Evidence from China

Shaomeng Jia and Yang Zhou
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Shaomeng Jia: Mississippi State University, Department of Economics
Yang Zhou: West Virginia University, Department of Economics

No 17-26, Working Papers from Department of Economics, West Virginia University

Abstract: We investigate the effects of economic freedom (marketization) on governance efficiency defined with the newest provincial level economic indicator data (NBSC, 2017) and economic freedom data (Fan et al., 2017) from 2008 to 2014 in China. With two different measures, the results suggest that economic freedom is positively correlated with governance efficiency. Moreover, the liberalization and marketization progress in the “factors market†is the single most significant area for both governance efficiency measures, while other areas like “market intermediary & legal system†have no significant effects.

Keywords: economic freedom; governance efficiency; marketization; regional economics; China (search for similar items in EconPapers)
JEL-codes: H11 P25 P37 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2017-09
New Economics Papers: this item is included in nep-eff and nep-tra
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