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The Impact of Economic Freedom on the Economic Growth in EU Countries

Author

Listed:
  • Iulia Iuga

    (“1st of December 1918” University of Alba Iulia, Faculty of Economics, Romania)

  • Ruxandra Lazea

    (“1st of December 1918” University of Alba Iulia, Faculty of Economics, Romania)

Abstract

This paper aims to examine the relationship between economic growth and economic freedom in the member states of the European Union (EU) from 2005 to 2020. By employing various statistical approaches, including The Ordinary Least Squares, Random Effect Model, and Fixed Effect Model, we analyze the data to estimate the overall and individual effects of economic freedom on economic growth. The present study concludes that the economic freedom has an impact on the economic growth phenomena and that the freedom economic liberalization contributes to a much better economic wellbeing of the population and determines an increasing tendency of the economy. After we independently evaluated different sub-indicators of economic freedom, we have discovered that the values of the majority of the economic freedom indicators have a significant contribution.

Suggested Citation

  • Iulia Iuga & Ruxandra Lazea, 2023. "The Impact of Economic Freedom on the Economic Growth in EU Countries," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 940-950, August.
    • Handle: RePEc:ovi:oviste:v:xxiii:y:2023:i:1:p:940-950
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    References listed on IDEAS

    as
    1. Justesen, Mogens K., 2008. "The effect of economic freedom on growth revisited: New evidence on causality from a panel of countries 1970-1999," European Journal of Political Economy, Elsevier, vol. 24(3), pages 642-660, September.
    2. Mohammed Ershad Hussain & Mahfuzul Haque, 2016. "Impact of Economic Freedom on the Growth Rate: A Panel Data Analysis," Economies, MDPI, vol. 4(2), pages 1-15, March.
    3. Jac C. Heckelman, 2000. "Economic Freedom and Economic Growth: A Short-Run Causal Investigation," Journal of Applied Economics, Taylor & Francis Journals, vol. 3(1), pages 71-91, May.
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    More about this item

    Keywords

    economic freedom; economic growth; panel data;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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