Economic freedom and productivity growth in resource-rich economies

Minoo Farhadi, Md Rabiul Islam, Solmaz Moslehi

Research output: Contribution to journalArticleResearchpeer-review

64 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)109 - 126
Number of pages18
JournalWorld Development
Volume72
DOIs
Publication statusPublished - 2015

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