On the Relevance of Freedom and Entitlement in Development : New Empirical Evidence (1975–2007)

Reviewing the economic performance -- good and bad -- of more than 100 countries over the past 30 years, this paper finds new empirical evidence supporting the idea that economic freedom and civil and political liberties are the root causes of why...

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Bibliographic Details
Main Author:	Chauffour, Jean-Pierre
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ABUSE ADULT LITERACY AGGREGATE OUTPUT ANNUAL GROWTH ANNUAL GROWTH RATE AUTONOMY AVERAGE GROWTH AVERAGE GROWTH RATE BASIC HUMAN RIGHTS CAPABILITIES CAPITAL MARKETS CAPITALISM CHILD LABOR CITIZEN CITIZENS CIVIL LIBERTIES CIVIL RIGHTS COERCION COUNTRY REGRESSIONS CULTURAL CHANGE CULTURAL RIGHTS DATA AVAILABILITY DEMOCRACIES DEMOCRACY DEMOCRATIZATION DETERMINANTS OF GROWTH DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DEVELOPMENT GOALS DEVELOPMENT INDICATORS DEVELOPMENT POLICIES DEVELOPMENT POLICY DISCRIMINATION DISTRIBUTION OF WEALTH ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FREEDOM ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC PROGRESS ECONOMIC PROSPERITY ECONOMIC REFORMS ECONOMIC RIGHTS ECONOMIC STAGNATION ECONOMICS ECONOMICS LETTERS ELECTIONS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL STUDIES ESTIMATED COEFFICIENT ESTIMATION TECHNIQUES EXCHANGE RATE EXPLANATORY VARIABLES FEMALE EDUCATION FIXED EFFECTS FIXED EFFECTS ESTIMATION FOREIGN DIRECT INVESTMENT FREE WILL FREEDOM OF EXPRESSION FREEDOMS FUNDAMENTAL RIGHTS FUTURE GROWTH GENDER EQUALITY GLOBAL ECONOMY GROWTH LITERATURE GROWTH MODEL GROWTH PERFORMANCE GROWTH RATES GROWTH REGRESSION GROWTH REGRESSIONS HUMAN BEINGS HUMAN CAPITAL HUMAN DEVELOPMENT HUMAN DIGNITY HUMAN RIGHTS HUMAN RIGHTS LAW IMPORTANT POLICY INCOME GROWTH INCREASES GROWTH INDEPENDENT VARIABLE INDIVIDUAL CHOICES INDIVIDUAL DECISIONS INDIVIDUAL FREEDOM INDIVIDUAL RIGHTS INDUSTRIALIZATION INEQUALITY INFANT INFANT MORTALITY INFLATION RATE INTEREST GROUPS INTERNATIONAL COMMUNITY INTERNATIONAL COVENANT INTERNATIONAL HUMAN RIGHTS INTERNATIONAL TRADE LABOR MARKET LEVEL OF DEVELOPMENT LIBERTY LIFE EXPECTANCY LIVING STANDARDS LONG RUN LONG-RUN GROWTH LONG-TERM GROWTH LONGER LIFE LOW-INCOME COUNTRIES MARGINAL TAX MARGINAL TAX RATE MARGINAL TAX RATES MARKET ECONOMY MODEL SPECIFICATIONS MONETARY ECONOMICS NATURAL RESOURCE NATURAL RESOURCES NEGATIVE EFFECT NEGATIVE IMPACT NEGATIVE SIGN PARTICIPATORY PROCESS PER CAPITA INCOME PER CAPITA INCOMES PLURALISM POLICY DISCUSSIONS POLICY MEASURES POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POLITICAL FREEDOM POLITICAL INSTITUTIONS POLITICAL LIBERTIES POLITICAL PARTIES POLITICAL PHILOSOPHY POLITICAL PROCESS POLITICAL RIGHTS POLITICAL SCIENCES POLITICAL SYSTEMS POOR COUNTRIES POVERTY REDUCTION PRESSURE GROUPS PRICE STABILITY PRIMARY PRODUCTS PRIVILEGES PROGRESS PROPERTY RIGHTS PUBLIC EMPLOYMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC OFFICIALS PUBLIC POLICIES PUBLIC SPENDING RAPID GROWTH RATE OF GROWTH RATES OF GROWTH REDUCING INEQUALITY RELATIVE PRICES RESPECT REVOLUTIONS RICH COUNTRIES RICHER COUNTRIES RIGHT RIGHT TO VOTE RULE OF LAW SIGNIFICANT IMPACT SOCIAL JUSTICE SOCIAL MOBILITY SOCIAL SCIENCES SOCIAL SECURITY SOCIAL SPENDING STANDARD DEVIATION STATE INTERVENTION STATE-OWNED ENTERPRISES SUFFRAGE SUSTAINABLE ECONOMIC GROWTH TECHNOLOGICAL PROGRESS TOLERANCE WELFARE STATE
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110516090121 http://hdl.handle.net/10986/3423

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Summary:	Reviewing the economic performance -- good and bad -- of more than 100 countries over the past 30 years, this paper finds new empirical evidence supporting the idea that economic freedom and civil and political liberties are the root causes of why some countries achieve and sustain better economic outcomes. For instance, a one unit change in the initial level of economic freedom between two countries (on a scale of 1 to 10) is associated with an almost 1 percentage point differential in their average long-run economic growth rates. In the case of civil and political liberties, the long-term effect is also positive and significant with a differential of 0.3 percentage point. In addition to the initial conditions, the expansion of freedom conditions over time (economic, civil, and political) also positively influences long-run economic growth. In contrast, no evidence was found that the initial level of entitlement rights or their change over time had any significant effects on long-term per capita income, except for a negative effect in some specifications of the model. These results tend to support earlier findings that beyond core functions of government responsibility -- including the protection of liberty itself -- the expansion of the state to provide for various entitlements, including so-called economic, social, and cultural rights, may not make people richer in the long run and may even make them poorer.

On the Relevance of Freedom and Entitlement in Development : New Empirical Evidence (1975–2007)

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