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Which Economic Freedoms Contribute Income per Capita? Are Results Sensitive to the Indicators and the Estimation Methods?

Author

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  • Fuat Erdal
  • Asli Yenipazarli

Abstract

This study investigates the roles of indicators, time-series analysis, and estimation techniques in economic freedom-growth relationship. We construct a new freedom index using annual data from Turkey between 1970 and 2006. The index consists of six components: government size, market intervention, soundness of the money and banking system, freedom of capital markets, freedom to trade, and institutional structure. The empirical results indicate that the relationship between economic freedom and per capita income is sensitive to indicators and estimation techniques. We also summarize the emerging process of a market economy and its accompanying growth performance.

Suggested Citation

  • Fuat Erdal & Asli Yenipazarli, 2013. "Which Economic Freedoms Contribute Income per Capita? Are Results Sensitive to the Indicators and the Estimation Methods?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(S5), pages 130-147, November.
  • Handle: RePEc:mes:emfitr:v:49:y:2013:i:s5:p:130-147
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    Citations

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    Cited by:

    1. Emrah KOÇAK & Nısfet UZAY, 2018. "Democracy, Economic Freedoms and Economic Growth: An Investigation on the Role of Institutions," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(36).
    2. Ivana Brkić & Nikola Gradojević & Svetlana Ignjatijević, 2020. "The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence," JRFM, MDPI, vol. 13(2), pages 1-13, February.

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