Work detail

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.

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