The Investigation of the Relationship Between Economic Freedom and Economic Growth with Panel Regression Method

Abstract

In this paper, the effect of economic freedom on economic growth in nine emerging market economies including Turkey is estimated by panel regression method for the years between 2000-2012. We used overall economic freedom index, property right index, business freedom index, trade freedom index and investment freedom index which were created by the Heritage Foundation. Analysis results indicate that property right index and investment freedom index have negative relationships with economic growth, while business freedom index and trade freedom index have positive relationships with economic growth. Overall economic freedom index is, however, found insignificant in our analysis.