Economic Freedom and Productivity Growth in Resource-rich Economies

Minoo Farhadi, Md. Islam () and Solmaz Moslehi ()

World Development, 2015, vol. 72, issue C, 109-126

Abstract: The focus of this paper is to test whether free market institutions that protect property rights and support freedom of choice and voluntary exchange can change the curse of natural resources into a blessing. To examine the above question, this paper uses the Fraser Institute’s economic freedom index and its five sub-indices, namely government size, property rights, access to sound money, freedom to trade, and setting proper regulations. Using data from 99 sample countries over the period 1970–2010, the system GMM estimates suggest that the negative growth effects of resource rents may turn positive in countries with greater economic freedom.

Keywords: natural resources; economic freedom; productivity growth (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (103)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:72:y:2015:i:c:p:109-126

DOI: 10.1016/j.worlddev.2015.02.014

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