Does Freedom Matter for Sustainable Economic Development? New Evidence from Spatial Econometric Analysis

Hosein Mohammadi (), Samira Shayanmehr and Juan D. Borrero
Additional contact information
Hosein Mohammadi: Department of Agricultural Economics, Ferdowsi University of Mashhad, P.O. Box 91775-1111, Mashhad 9177948974, Iran
Samira Shayanmehr: Department of Agricultural Economics, Ferdowsi University of Mashhad, P.O. Box 91775-1111, Mashhad 9177948974, Iran
Juan D. Borrero: Department of Management and Marketing, University of Huelva, 21002 Huelva, Spain

Mathematics, 2022, vol. 11, issue 1, 1-19

Abstract: Achieving sustainable economic development is always considered one of the main economic goals of countries. Therefore, researchers are interested in presenting new econometric models for more accurate identification of factors affecting economic growth. The current study evaluates the impact of various aspects of freedom (economic freedom, press freedom, civil freedom, and political rights) and an aggregated freedom index on economic growth in European countries from 2000 to 2019 using spatial panel econometric techniques. In addition, the effects of variables such as FDI, financial development (FD), human capital (HC), and capital stock on economic growth are examined. The findings of this research confirm the existence of spatial autocorrelation in economic growth. The results reveal that civil liberties, economic and press freedom, and aggregated freedom boost economic growth, whereas political rights have no significant effect on economic growth. Furthermore, the econometric model results indicate that FDI, FD, HC, and capital stock are positively and significantly associated with economic growth. This research is expected to provide policymakers with a thorough understanding of how to implement the best policies in European countries to achieve sustainable economic development.

Keywords: aggregated freedom index; economic growth; FDI; human capital; spatial models (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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