Does increase in economic freedom improve the quality of economic growth: an empirical study based on the G20 National Panel Data

GUO Weijun1 HUANG Fanhua1

(1.Nanjing University Business School)

【Abstract】The paper constructs an economic growth quality evaluation system, including economic growth efficiency, economic growth stability, economic structure optimization, social welfare and green development. Based on the panel data of G20 countries from 2001 to 2014, the SYS-GMM dynamic panel model is used to empirically examine the impact of economic freedom on economic growth quality. The results show that, in general, the increase in economic freedom significantly improves economic growth quality and the effect after 2008 is more prominent. However, this effect differs between developed and developing countries. In view of sub-indexes of economic freedom, the improvement of legal structure and property protection, monetary policy rationality, foreign communication freedom and labor and business regulation all has promoting effect on economic growth quality, and the improvement of government scale will have positive impact on the economic growth quality when it passes certain threshold point.

【Keywords】 economic freedom; economic growth quality; G20 countries;

【DOI】

【Funds】 Key Research Base of Humanities and Social Sciences of the Ministry of Education of China (16JJD790025)

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(Translated by SHEN Meilin)

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This Article

ISSN:1002-4670

CN: 11-1692/F

Vol , No. 12, Pages 1-17

December 2019

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Abstract

  • Introduction
  • 1 Construction and measurement of index system of economic growth quality
  • 2 Theoretical analysis
  • 3 Econometric model design, variable specification and descriptive statistics
  • 4 Empirical result and analysis
  • 5 Conclusion and implication
  • References