Political freedom, economic freedom, and income convergence: Do stages of economic development matter?

Xu, Zhang; Li, Haizheng

doi:10.1007/s11127-007-9253-y

Cited by 38 publications

(22 citation statements)

References 39 publications

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“…3. See Easton and Walker (1997), Ayal and Karras (1998), Dawson (1998Dawson ( , 2003, De Haan and Sierman (1998), Gwartney, Lawson, and Holcombe (1999), Wu and Davis (1999), De Haan and Sturm (2000), Carlsson and Lundstrom (2002), Justesen (2008), Xu and Li (2008), Faria andMontesinos (2009), andGwartney (2009). relationship between the level of economic freedom and income inequality, Scully (2002) finds that higher levels of economic freedom are associated with lower levels of income inequality. Both studies use the Fraser Institute Economic Freedom index to measure economic freedom across countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Freedom and Income Inequality Revisited: Evidence From a Panel Error Correction Model

Apergis

Dincer

Payne

2013

Contemporary Economic Policy

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We investigate the causal relationship between income inequality and economic freedom using data from U.S. states over the period 1981 to 2004 within a panel error correction model framework. The results indicate bidirectional causality between income inequality and economic freedom in both the short and the long run. These results suggest that high income inequality may cause states to implement redistributive policies causing economic freedom to decline. As economic freedom declines, income inequality rises even more. In other words, it is quite possible for a state to get caught in a vicious circle of high income inequality and heavy redistribution. (JEL D63, H11)

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Section: Literature Reviewmentioning

confidence: 99%

Economic Freedom and Income Inequality Revisited: Evidence From a Panel Error Correction Model

Apergis

Dincer

Payne

2013

Contemporary Economic Policy

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“…Xu and Li (2008) collected data for a sample of 104 countries between 1970 and 2003. They found that political freedom has positive effects on economic growth at later stages of social and economic development.…”

Section: Literature Overviewmentioning

confidence: 99%

Political instability and economic growth: Evidence from two decades of transition in CEE

Gurgul

2013

Communist and Post-Communist Studies

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This paper examines the nexus between political instability and economic growth in 10 CEE countries in transition in the period 1990-2009. Our results support the contention that political instability defined as a propensity for government change had a negative impact on growth. On the other hand, there was no causality in the opposite direction. A sensitivity analysis based on the application of a few hundred different variants of the initial econometric model confirmed the abovementioned findings only in the case where major government changes were applied to the definition of political instability.

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“…Scully [39] estimated that economic freedom promotes economic growth and positive association. Xu and Li [40] examined economic freedom has strong support and greater positive effects on income convergence in the OECD countries. Ashby and Sobel [41] estimated that economic freedom has positively associated with higher income and a higher rate of income growth.…”

Section: Economic Freedom and Per Capita Incomementioning

confidence: 99%

The Impact of Economic Freedom on Creating Happiness and Inequality: International Evidences

Roka

2020

SAJSSE

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It is remaining a big question in happiness economics, what is the common motto of human beings? What human beings want to achieve? Are these, money, good job, position, power, peace, good living condition, good health, good family, good environment and what others? All researchers from different disciplines are investigating to solve this economic problem and Most of the researchers agreed that happiness is the common aim of everyone in the world. The paper entitled “Does Economic Freedom Create Happiness or Inequality?” is estimated the effect of economic freedom on happiness by using other control variables like Gross Domestic Product growth, per capita and inequality. The paper analyzed the panel data covering 120 countries from 2008 to 2016. The fixed and random effect, the Generalized Least Squares, First in Difference and Linear Dynamic Panel Data/generalized method of moments estimation method are applied as the econometric strategies in this paper. The results found that the statistically significant and strong linear positive association between economic freedom and happiness in overall sampled countries and also found the positive linear association between income with happiness and a negative association between economic freedom and inequality and inequality and happiness.

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Political freedom, economic freedom, and income convergence: Do stages of economic development matter?

Abstract: Income convergence, Economic freedom, Political freedom, Stages of development, OECD countries, C12, C23, O53, O57,

Cited by 38 publications

References 39 publications

Economic Freedom and Income Inequality Revisited: Evidence From a Panel Error Correction Model

Economic Freedom and Income Inequality Revisited: Evidence From a Panel Error Correction Model

Political instability and economic growth: Evidence from two decades of transition in CEE

The Impact of Economic Freedom on Creating Happiness and Inequality: International Evidences

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