Economic freedom and economic growth: A Meta-Analysis
| Author: | Mgr. Víctor Sardinero |
|---|---|
| Year: | 2021 - summer |
| Leaders: | doc. PhDr. Tomáš Havránek Ph.D. |
| Consultants: | |
| Work type: | CSF - Corporate Strategy and Finance Masters |
| Language: | English |
| Pages: | 75 |
| Awards and prizes: | |
| Link: | https://ckis.cuni.cz:443/F/?func=direct&doc_number=002449043&local_base=CKS01&format=999 |
| Abstract: | The association between economic freedom and economic growth has been largely explored by researchers and the overall ndings indicate a signi cant and positive relationship. The empirical literature, however, is subject to su er from bias. In this paper we collect 16,070 estimates from 69 studies and using recently developed meta-analytic techniques investigate the e ect of publication and speci cation biases on the reported results. While our baseline analysis reports some evidence for publication bias, but not very strong and robust, and con rms the speci cation bias reported by previous reviews, we also nd that these results are a ected by the inclusion of three in uential outliers in the data set. Once we trim these studies, there is no evidence of speci cation bias anymore and we nd evidence of a robust and strong publication bias. Further, after controlling for the bias, we nd that the true e ect of economic freedom on growth is substantially smaller than the e ect reported by the empirical literature. |
