On the Relationship Between Economic Freedom and Output Per Worker: The Case of Asia-Pacific Countries

Authors

  • Noha Emara Rutgers University, U.S.A.
  • Loreto Reyes Rebolledo

Abstract

In this paper we study the effect of economic freedom on output per worker using a panel least square estimation methodology for a sample of 14 Asia-Pacific (APAC) and 18 OECD countries over the 1980-2014 period. This methodology allows us not only to study the relationship between the economic freedom and output per worker in APAC countries but also compare it with the empirical association between economic freedom and output per worker observed in OECD countries. The study also investigates the role of governance in affecting the impact of economic freedom on output per worker and its components. Our results indicate that 1) economic freedom has a positive and statistically significant impact on output per worker when we consider all countries in the sample and control for country-and time- fixed-effects. 2) A country's economic freedom has a on its positive and statistically significant impact on its output per worker, but this effect higher for OECD countries than for APAC countries. 3) For APAC countries, a country's size of government, legal system, and regulation has a positive and statistically significant impact on its output per worker.

Keywords: APAC; Economic Freedom; Political Freedoms; Productivity; Corruption

JEL Classifications: O16; O43; N20

DOI: https://doi.org/10.32479/ijefi.8252

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Author Biography

Noha Emara, Rutgers University, U.S.A.

Dr. Emara received her M.A. and her Ph.D. in Economics from Rutgers University, The State University of New Jersey, New Brunswick. Upon finishing her Ph.D., Dr. Emara served as a Term Assistant Professor of Economics at Barnard College, Columbia University where she has taught Economic Reasoning, Econometrics, Money and Banking, Labor Economics, and Development Economics.Dr. Emara also taught courses at Drew University, Rutgers University-New Brunswick, and Helwan University. Among the course she has taught at the three universities are Econometrics, Mathematical Economics, Economic Fluctuations, Money and Banking, and Intermediate Macro.Her current research program includes five streams of research suitable for peer-review: (1) explorations of the impact of governance and economic freedom on economic growth; (2) explorations of development in developing countries; (3) examinations of monetary and financial issues; (4) papers related to predictions and forecasting; and (5) co-authored microeconomics papers in which she supplied the econometrics part.

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Published

2019-11-06

How to Cite

Emara, N., & Rebolledo, L. R. (2019). On the Relationship Between Economic Freedom and Output Per Worker: The Case of Asia-Pacific Countries. International Journal of Economics and Financial Issues, 9(6), 184–194. Retrieved from https://econjournals.com/index.php/ijefi/article/view/8252

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