National Competitive Advantage and the Roles of Economic and Political Freedom: Evidence from Hong Kong

Edmund R. Thompson ()

Public Choice, 2004, vol. 120, issue 3_4, 437 pages

Abstract: The equivocal interrelationships between economic performance and the institutions of, respectively, economic and political freedom are examined using data from firms operating in Hong Kong, an economy where both an erstwhile paramount international business reputation for competitiveness and the institutional basis on which it was predicated have come into question in recent years. It is hypothesized that (i) both economic and political freedom declines will be associated with a proxy for future economic performance, competitiveness decline, but that (ii) the correlation of economic freedom declines with competitiveness decline will be mediated by political freedom declines. Hierarchical regression analyses tend to support these hypotheses, although results vary by firm origin.

Date: 2004
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