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On Testing the Connection between Economic Freedom and Growth

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Author(s): ROBERT A. LAWSON

Journal: Econ journal watch
ISSN 1933-527X

Volume: 3;
Issue: 3;
Start page: 398;
Date: 2006;
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Keywords: Economic Freedom | Economic Growth | Liberalization

ABSTRACT
Jakob De Haan, Susanna Lundström, and Jan-Egbert Sturm have written a valuable survey of the literature that uses the Gwartney and Lawson economic freedom (EFW) index. Their discussion of the index’s theoretical underpinnings and methodological ins and outs itself should be useful to scholars interested in the field. While DLS accurately describe the mechanics of the construction of the EFW index and the econometric literature that has found a link between economic freedom and economic growth, I find myself in disagreement with some of their commentary. This reply in part will address these issues.

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