Influence of the degree of economic freedom on labor productivity in Latin America

Juan Celestino León Mendoza
Additional contact information
Juan Celestino León Mendoza: Universidad Nacional del Callao

Revista Tendencias, 2026, vol. 27, issue 01, 122-147

Abstract: Introduction: Latin American countries exhibit considerable heterogeneity in terms of labor productivity levels and the degree of economic freedom. Objective: To analyze the influence of economic freedom on labor productivity in Latin American countries. Methodology: Panel data from 20 countries covering the period 2014 - 2023 were used, applying clustered ordinary least squares, fixed and random effects models. Results: Economic freedom has a positive effect on labor productivity. The countries with the highest levels of productivity are those with the highest degree of economic freedom. Key indicators include property rights, control of corruption, public spending, fiscal health, entrepreneurial freedom and monetary independence. Discussion: A greater degree of economic freedom fosters labor productivity, although the relationship varies between countries. The interaction with other factors such as educational quality and infrastructure also influences the results. Although economic freedom is key, other complementary elements must be considered for a more significant impact. Conclusions: Economic freedom is crucial to increase labor productivity. Economic policies should focus on creating a favorable environment for investment and innovation.

Keywords: capital; market economy; labor economics; research and development; labor; economic model (search for similar items in EconPapers)
JEL-codes: B59 C23 J01 (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://revistas.udenar.edu.co/index.php/rtend/article/view/9997
https://revistas.udenar.edu.co/index.php/rtend/article/view/9997/10891

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000520:022232

DOI: 10.22267/rtend.2627

Access Statistics for this article

More articles in Revista Tendencias from Universidad de Narino Contact information at EDIRC.
Bibliographic data for series maintained by Universidad de Narino ().