Political Freedom and Growth

摘要: The relationship between political freedom and economic growth is considered very critical in economics. On the one hand, found to be positively correlated with (Lipset 1993; Przeworski Limongi Barro 1997; Minier 1998; 2004). other a number of high growing countries experienced low rights such as: China, Saudi Arabia, United Arab Emirates. Besides, several democratic faced Greece Spain (Arat 1988; Vanhanen 1990; Heo Tan 2001). This study aims at examining impact on growth. Since, literature covered three contradictory findings regarding main driver growth, an unbalanced panel dataset running from 1970 2012 spanning 92 (high income countries) was adopted address our research question. data retrieved World Bank's Development Indicators (WDI) Global Finance (GDF) databases. Furthermore, classification derived Transparency International. following factors as determinants growth: population rate, mortality fertility human capital, government expenditures, foreign direct investment, culture risk. In addition, significance variables compared two models: Model 1 rights) 2 (low rights). Through comparing results based level, it revealed that there are more differences countries. Countries (even different levels) show all have similar effect except rate. Conversely, results. rate statistically significant but not ones. contrast, highly Likewise, income. Finally, fiscal policy (government expenditures) does seem effective both groups. summary, regardless lack makes investment invaluable for Contrary Prescott (2014), Taylor Summers this paper concludes investors prefer over internal policies within country.