Government size and growth: Accounting for economic freedom and globalization

We examine the relationship between government size and economic growth, controlling for economic freedom and globalization, and using Bayesian Averaging over Classical Estimates in a panel of rich countries. Countries with big government have experienced above average increases in the KOF globalization index and in the Fraser institute’s Economic freedom index. To maintain comparability with earlier studies, we use two sample periods: 1970–1995 and 1970–2005. Government size robustly correlates negatively with growth. We also find some evidence that countries with big government can use economic openness and sound economic policies to mitigate negative effects of big government.     

The two freedoms,economic growth and development: An empirical study

Log-linear methods are applied to categorical data containing economic freedom, political freedom, the level of income, and the rate of economic growth for a panel of about 100 countries from 1975 to 1992. The main results are: given economic freedom, the rate of economic growth is independent of political freedom and the level of income; given the level of income, political freedom is independent of economic freedom and the growth rate. The analysis suggests the fundamental effects of economic freedom in fostering economic growth, and a high level of income as the condition of a high degree of political freedom.     

Economic freedom, culture, and growth

How do economic freedom and culture impact economic growth? This paper argues that culture, as measured by the World Values Surveys, and economic institutions associated with economic freedom are both independently important for economic prosperity, but the strength of their impact can be better understood only when both are included in the growth regression. Our results indicate that economic freedom is more important than culture for growth outcomes, suggesting substitutability between the two. We posit that culture is important for growth when economic freedom is absent, diminishing in significance once economic freedom is established.     

Does economic freedom cause prosperity? An IV approach

A positive, statistical and economic significant relation between growth, income level and the Economic Freedom of the World (EFW) index has been amply documented. Most analyses, however, use OLS methods which, in the presence of endogenous variables do not establish causality and produce biased and inconsistent estimates. This paper uncovers the exogenous component of EFW using IV methods and finds a robust channel from economic freedom to prosperity. The findings, including instrument validity tests, support the importance of policies and institutions for development and warrants policy advice aimed at increasing economic freedom to foster prosperity.     

An Empirical Note on Economic Freedom and Income Inequality

I report estimates for a fixed-effects model of country-level Gini coefficients as a function of economic freedom along with relevant control variables. Gini coefficients are drawn from the UNU/WIDER World Income Inequality Database Version 2.0a, while economic freedom is measured by the Fraser Institute's Economic Freedom of the World index. Controls are included for per capita income, political structure, education, demographics, and industrial composition. Over a broad range of freedom, the estimated relation between economic freedom and income inequality is positive, statistically significant, but relatively inelastic.     

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

In the literature, theory and empirical evidence on the nexus of political freedom, economic freedom, and economic growth are mixed. In this paper, we test the hypothesis that the effect of political freedom on promoting economic growth is realized and detectable at later stages of social and economic development. Using panel data for a sample of 104 countries between 1970 and 2003, we find strong support for our hypothesis. While economic freedom has greater effects on income convergence in the OECD countries, political freedom clearly promotes the convergence among those OECD countries.     

Democracy and Economic Growth: A Meta-Analysis

Despite a sizeable theoretical and empirical literature, no firm conclusions have been drawn regarding the impact of political democracy on economic growth. This article challenges the consensus of an inconclusive relationship through a quantitative assessment of the democracy-growth literature. It applies meta-regression analysis to the population of 483 estimates derived from 84 studies on democracy and growth. Using traditional meta-analysis estimators, the bootstrap, and Fixed and Random Effects meta-regression models, it derives several robust conclusions. Taking all the available published evidence together, it concludes that democracy does not have a direct impact on economic growth. However, democracy has robust, significant, and positive indirect effects through higher human capital, lower inflation, lower political instability, and higher levels of economic freedom. Democracies may also be associated with larger governments and less free international trade. There also appear to be country- and region-specific democracy-growth effects. Overall, democracy's net effect on the economy does not seem to be detrimental.     

Does free trade really reduce growth? Further testing using the economic freedom index

While studies of the relationship between economic freedom and economic growth have shown it to be positive, significant and robust, it has rightly been argued that different areas of economic freedom may have quite different effects on growth. Along that line, Carlsson and Lundström (2002) present the surprising result that “International exchange: Freedom to trade with foreigners” is detrimental for growth. We find that “Taxes on international trade” seems to drive this result. However, using newer data and a more extensive sensitivity analysis, we find that it is not robust. Least Trimmed Squares-based estimation in fact renders the coefficient positive.     

Economic freedom and equality: Friends or foes?

How does economic freedom, mainly how property rights are designed and protected, relate to income equality? Whilst this is argued to be theoretically ambiguous, the empirical results reveal that there is a positive relationship between changes in economic freedom and equality: the more a country increased its economic freedom between 1975 and 1985, the higher the level of equality around 1985. Most important in this regard is trade liberalization and financial deregulation. Also, there are signs that the level of economic freedom in 1985 is negatively related to the level of equality around that year, plausibly because of less redistribution.

     

Tolerance and economic growth revisited: a note

Berggren and Elinder (BE) in this journal write on the relationship between the degree of tolerance in a nation and its rate of economic growth. They are disturbed to find in their cross sections that faster economic growth statistically goes together with intolerance of homosexuals. In this comment, we revisit the issue and demonstrate that the concern expressed by BE is unwarranted if we properly account for ??conditional convergence?? in the regressions for economic growth. Other things being equal, a country grows faster if it starts from a poorer initial position. In the BE dataset, China since the Deng reforms is a prime example. At about the same time, another group of countries managed to accelerate their economic growth after a long period of stagnation: the ex-communist countries in central and Eastern Europe. Many of these nations also grew exceptionally fast for a number of years, once freedom had been regained and the initial chaos overcome. With simple modeling of these historical initial conditions, we find no statistical pattern that associates bias against homosexuals with weaker economic growth. Our results are robust under alternative specifications.     

Introduction to Kirchheimer

Mainly through examining an essay by Iris Marion Young on policy and treatment for pregnant drug users, I compare the feminist ethic of care with the ethics of Michel Foucault, which, I argue, are founded upon the value of freedom. I find several contradictions in Young's work. She criticizes universalization, but does not avoid it herself; she espouses the value of freedom, yet wants the other to conform to her own values. I argue that the problem lies in Young's liberal-humanist understanding of freedom and its relation to ethics. Foucault's understanding of freedom is a sounder base for an ethics, and this provides needed support for the concept of caring. It also yields new perspectives on social problems such as drugs.     

Measuring Ethnic Fractionalization in Africa

In most studies of the impact of ethnic diversity on economic growth, diversity is hypothesized to affect growth through its effect on macroeconomic policies. This article shows that most measures of ethnic diversity (including the commonly used ELF measure) are inappropriate for testing this hypothesis. This is because they are constructed from enumerations of ethnic groups that include all of the ethnographically distinct groups in a country irrespective of whether or not they engage in the political competition whose effects on macroeconomic policymaking are being tested. I present a new index of ethnic fractionalization based on an accounting of politically relevant ethnic groups in 42 African countries. I employ this measure (called PREG, for P olitically R elevant E thnic G roups) to replicate Easterly and Levine's influential article on Africa's "growth tragedy." I find that PREG does a much better job of accounting for the policy-mediated effects of ethnic diversity on economic growth in Africa than does ELF.     

对我国媒体与法院冲突的思考

媒体与法院的关系是“依法治国”所面临的一个重大理论与现实问题。从媒体追求信息实现其表达自由的本质来看,它并非具备裁判公平正义的功能,司法独立的意义不仅在于司法权不受其他政府机构的干预,而且也要独立于媒体所代表的舆论压力。协调与处理媒体与法院的关系,应以本土资源为基础,并有选择地适用域外经验,以实现媒体与法院的良性有序互动。     

Intolerance and Political Repression in the United States: A Half Century after McCarthyism

What consequences for political freedom arise from high levels of political intolerance among the American public? Comparing surveys from 1954 to 2005, I document the level of perceived freedom today and consider how it has changed since the McCarthy era. Levels of intolerance today and in 1954 are also compared. Next assessed is whether restrictions on freedom are uniformly perceived or whether some subsections of the population are more likely to feel repressed than others. I find that while intolerance may have declined somewhat since 1954, perceived constraints on individual freedom have actually increased. These findings produce telling consequences for the subtheory of pluralistic intolerance. During McCarthyism, intolerance focused on the Left; today, many groups are not tolerated, so the loss of freedom is more widespread. Heretofore, many thought that pluralistic intolerance tended to be benign. At least in the case of the contemporary United States, it seems not to be.     

Liberty and development: A further empirical perspective

This paper uses the Wright ratings of economic freedom to investigate the relationship between economic freedom and economic development for most countries in the world. This relationship is apparently strong and direct for such economic freedoms as freedom of property and freedom of movement but inverse for freedom of association. These findings appear to be independent of the type of economic system or civil liberties, as measured by the Gastil ratings, which have their own important effects on economic development.With the statistical assistance of Laurie D. Still. Comments on previous drafts by Iraj Aberdian, Merle Holden, Brian Kantor, John W. Kendrick, Peter Kennedy, Jack Knetsch, Chris Lingle, Denton Marks, Peter Moll, Frank Vorhies, an anonymous referee, and the participants of seminars at the University of Cape Town, the University of Natal and Simon Fraser University are gratefully acknowledged.     

Incomes Policy in Finland: Economic and Social Effects in a Comparative Perspective

This paper examines the performance of the Finnish economy during the so-called incomes policy period, 1969-80. For this purpose Finland is compared with the other OECD countries both before and during the incomes policy period. The results suggest that in terms of economic growth, inflation and unemployment, Finnish economy has improved its performance, particularly before the economic recession of the mid-seventies. Cross-national comparisons point out that the recession has been met in various ways: some countries have restrained inflation, some unemployment. Secondly, the paper examines the effects of incomes policy agreements on the growth of social expenditure, the result being that incomes policy cannot be regarded as responsible for the growth of social expenditure in Finland. Thirdly, effects on income distribution are analyzed. Here incomes policy has played a role: income inequalities diminished during the first five years of incomes policy. Since then, they have not changed. The paper ends by discussing the impact and nature of incomes policy.     

Assessing the (eco)macroeconomic performance index of India: A data envelopment analysis approach

The prime objective of this article is to construct a robust macroeconomic performance (MEP) index of the Indian economy using the data envelopment analysis (DEA) approach. Seven major macro indicators, namely, economic growth, employment rate, terms of trade, inflation rate, fiscal deficit, pollution, and climate change are used to compute MEP and Eco‐MEP indices of the Indian economy from 1980–1981 to 2018–2019. Overall, both the MEP and Eco‐MEP index scores have quite similar best performing years worst performing years, and have also captured the major events that affected adversely the Indian economy during the past decades. The trend in the overall performance of the Indian economy was better in the 1980s and the 1990s but has deteriorated since 2000. The autoregressive distributed lag bounds testing approaches to cointegration methods are used to test the robustness/utility of these indices. The estimated results show that MEP and Eco‐MEP have a positive impact on private investment, foreign investment inflows, foreign direct investment, and a negative effect on the current account deficit. Hence, the suggested composite MEP index is stable, robust and truly captures the economic performance of India. The constructed MEP composite index may be used by foreign investors, rating agencies, private investors, and policymakers for their planning and decision‐making processes.     

Social choice and economic growth

Optimal economic growth deals with the problem of how societies make tradeoffs between current and future consumption, or equivalently, how societies make decisions about investment rates. Until now, theorists have simply assumed that there is some societal utility function which planners can maximize. Social choice theorists have thrown doubt upon the concept of a societal utility function. We treat optimal economic growth as a problem in social choice theory. Assume that citizens have preferences over the various growth plans. Under what conditions will a majority rule equilibrium exist? We show that such an equilibrium can exist for a Ramsey type problem. We then briefly consider social choice in the so-called “labor surplus” economy.     

Freedom and growth: Do constitutions matter?

This paper uses an augmented Solow model, with cross section data, to measure the effect on per-capita income of a) the entrenchment of various rights in a country's constitution and b) the level of economic freedom in a country, broadly construed. The results suggest that entrenchment,per se, of any single right seldom has a significant general economic effect, while the effect of economic freedom is significant and substantial. The paper then considers whether such evidence could support the proposition that “constitutions do not matter.” While it concludes otherwise, it does caution against incurring excessive negotiation costs to obtain entrenchment of a comprehensive “wish list” of rights.     

ECONOMIC DEVELOPMENT AND ADMINISTRATIVE POWER THEORY: A COMPARATIVE ANALYSIS OF STATE DEVELOPMENT AGENCIES*

The ability of state leaders to influence economic growth and diversity within their states is a disputed issue within the literature on state economic development policy-making. This research contributes to this debate by developing comparative measures of state development agency power drawn from the emerging theory on organizational power. If state policy leaders have independent control over the economic performance of their states and if that influence is exercised through the administrative unit responsible for that activity, states which have supplied their agencies more resources and freedom in using those resources should outperform those states which have not.