Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282445 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10757
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Economic freedom and economic growth can be connected in most countries, but it is often necessary to specify those aspects of economic freedom that can foster economic growth. This paper examines the nexus between economic freedom and economic growth in the Least Developed Countries (LDCs) using panel data for the period 2000-2021. Results show that, in general, economic freedom positively influences economic growth in the LDCs. Moreover, most economic freedom factors raise economic growth. However, the effect of government spending, fiscal and financial freedom on economic growth is negative. Using a Principal Component Analysis for the economic freedom sub-indicators confirms the results.
Subjects: 
economic freedom
economic growth
LDCs
financial development
panel data
JEL: 
C23
G10
O10
O43
Document Type: 
Working Paper
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