THE EFFECT OF ECONOMIC FREEDOM ON BUSINESS CYCLE VOLATILITY: CASE OF DEVELOPING COUNTRIES

Nabil Alimi ()
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Nabil Alimi: Université de Tunis El Manar

Region et Developpement, 2016, vol. 43, 139-158

Abstract: Few studies have analyzed the effect of economic freedom on busi-ness cycle volatility. The objective of this paper is to examine the relationship between economic freedom and volatility cycles of 109 developing countries over the period 1995-2012. Using Generalized Method of Moments (GMM) estimators we prove that greater economic freedom leads to less business cycle volatility. Yet, this link is not statistically significant for all different income level groups.

Keywords: ECONOMIC FREEDOM; DEVELOPING COUNTRIES; BUSI-NESS CYCLE FLUCTUATIONS (search for similar items in EconPapers)
JEL-codes: E32 O17 O5 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:tou:journl:v:43:y:2016:p:139-158

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