Monday, August 12, 2013

Empirical evidence that economic freedom leads to increased economic growth

Over at the free-market blog Marginal Revolution, Alex Tabarrok highlights the findings of a recent paper that examines the effect of "liberalizing" political policies on economic performance across a variety of countries around the globe.  In this instance, "liberalizing" refers to "comprehensive reforms that extend the scope of the market, and in particular, international markets".  The results are impressive; here's a collection of graphs making the point:

There's much more at Tabarrok's post, including the methodology of this study and a discussion of how they replicate recent, similar work by other economists.
“comprehensive reforms that extend the scope of the market, and in particular of international markets,” - See more at: http://marginalrevolution.com/marginalrevolution/2013/08/liberalization-increases-growth.html#sthash.FSKHUkkf.dpuf
“comprehensive reforms that extend the scope of the market, and in particular of international markets,” - See more at: http://marginalrevolution.com/marginalrevolution/2013/08/liberalization-increases-growth.html#sthash.FSKHUkkf.dpuf