Economic Freedom and Productivity Growth in Resource-rich Economies

By Minoo Farhadi, M. Islam, S. Moslehi. 2015

191 citations recorded by the source corpus.

The focus of this paper is to test whether free market institutions that protect property rights and support freedom of choice and voluntary exchange can change the curse of natural resources into a blessing. To examine the above question, this paper uses the Fraser Institute’s economic freedom index and its five sub-indices, namely government size, property rights, access to sound money, freedom to trade, and setting proper regulations. Using data from 99 sample countries over the period 1970–2010, the system GMM estimates suggest that the negative growth effects of resource rents may turn positive in countries with greater economic freedom.

Subfields: Building and Construction, Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/bd4c930f5476f57e9b613f6c905ea16e40d80e92

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Citations in the corpus

The evolution of the natural resource curse thesis: A critical literature survey (2017, background): “Recent case studies argue convincingly that the resource curse may be operating via negative effects on productivity, financial sector development, and human capital development (see Yuxiang and Chen, 2011; Blanco and Grier, 2012; Farhadi et al., 2015; Duraisami, 2015).”
Institutional Quality and Economic Growth: The Case of Emerging Economies (2018, background): “811127 1944 Theoretical Economics Letters ciency [10], allocating resources more efficiently [11] [12], protecting property rights and supporting freedom of choice [13].”