Economic Freedom Verses Economic Growth: Cross Countries Analysis in the form of ARDL approch
Khalid Mahmood and
Toseef Azid ()
Additional contact information Khalid Mahmood: Ph.D student department of Economics, Bahauddin Zakariya University Multan Pakistan
Toseef Azid: Professor of Economics, Faculty of Financial and Administrative Sciences Taibah University Madinah, Saudi Arabia
The generous theoretical and empirical debates are available on institutional freedom and economic growth, but unsuccessful to facilitate stationary conclusion regarding the nature of connection. It is still confusing that either economic freedom cause economic growth or economic growth widens the foundation for economic freedom. The finale will be more puzzled if the analysis based on different kinds of economies. The aim of this study is to probe the nature of relationships between economic freedom and economic growth in different kinds of economies. For statistical evidence autoregressive distributed lag (ARDL) approach is employed by using the data of 96 countries [High Income (29), Upper Middle Income (18), Lower Middle Income (26) and Lower Income (23)]. The empirical results indicate bilateral and robust relationships between economic freedom and economic growth in high income and lower middle income countries, while in upper middle income and low income countries, economic freedom causes economic growth in unilateral connection.
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