An Econometric Analysis Of The Impact Of Economic Freedom On Economic Growth In The Sadc

P le Roux and V Gorlach

Studies in Economics and Econometrics, 2011, vol. 35, issue 2, 1-14

Abstract: The SADC is attempting to achieve development and economic growth. By improving economic freedom, a country can experience sustained economic growth without increasing fundamental inputs i.e. labour and capital. This study tests the effects of population growth, openness and economic freedom on economic growth as well as the causality between economic freedom and economic growth. A panel data model is used due to the lack of data for individual SADC countries. The fixed effects model is statistically significant and allows county-specific differences, arising from independent variables, to be measured. Results reveal that population growth positively affects economic growth although it is not significant. Openness is positively related to economic growth. However, the magnitude of this openness relationship is relatively small. Economic freedom has a significantly favourable effect on economic growth, stronger than that of openness. The Granger causality test confirms the direction of causality, economic freedom precedes economic growth.

Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10800379.2011.12097222 (text/html)
Access to full text is restricted to subscribers.

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:taf:rseexx:v:35:y:2011:i:2:p:1-14

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rsee20

DOI: 10.1080/10800379.2011.12097222

Access Statistics for this article

Studies in Economics and Econometrics is currently edited by Willem Bester

More articles in Studies in Economics and Econometrics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().