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The Effect Of Economic Freedom On Business Cycle Volatility: Case Of Developing Countries

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  • Nabil ALIMI

    (Université de Tunis El Manar)

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.

Suggested Citation

  • Nabil ALIMI, 2016. "The Effect Of Economic Freedom On Business Cycle Volatility: Case Of Developing Countries," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 139-158.
    • Handle: RePEc:tou:journl:v:43:y:2016:p:139-158
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    More about this item

    Keywords

    ECONOMIC FREEDOM; DEVELOPING COUNTRIES; BUSI-NESS CYCLE FLUCTUATIONS;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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