Economic freedom, democracy and inclusive growth: An empirical study for eleven ECOWAS countries
- 1Ecole Nationale Supérieure de Statistique et d’Economie Appliquée d’Abidjan (ENSEA), Abidjan, Côte d’Ivoire
Int. Res. J. Social Sci., Volume 7, Issue (10), Pages 13-16, October,14 (2018)
The goal of the study is to analyze the link between economic freedom, democracy and inclusive growth in eleven ECOWAS countries during the period 1995-2015. Using fixed and random effects models, we provide evidence of positive effects of economic freedom and democracy on inclusive growth, with the effect of economic freedom greater than the one of democracy. Using panel causality tests, we find that economic freedom causes inclusive growth in Mali. In Mali and Nigeria, inclusive growth causes economic freedom. Inclusive growth causes democracy in Senegal. Democracy causes inclusive growth in Benin, Nigeria and Senegal. Economic freedom causes democracy in Benin and democracy causes economic freedom in Côte d’Ivoire.
- de Haan J. and Siermann C.L. (1998)., Further evidence on the relationship between economic freedom and economic growth., Public Choice, 95(3/4), 363-380.
- Piatek D., Szarzec K. and Pilc M. (2013)., Economic freedom, democracy and economic growth: a causal investigation in transition countries., Post-Communist Economies, 25(3), 267-288.
- Pattanaik F. and Nayak N.C. (2014)., Economic freedom and economic growth in India: What is the empirical relationship?., Economic Change and Restructuring, 47(4), 275-298.
- Lipset S.M. (1959)., Some social requisites of democracy: economic development and political legitimacy., American Political Science Review, 53(1), 69-105.
- Miller T. and Kim A.B. (2017)., Index of Economic Freedom., The Heritage Foundation, 19-35.
- Dumitrescu E.I. and Hurlin C. (2012)., Testing for Granger non-causality in heterogeneous panels., Economic Modelling, 29(4), 1450-1460.
- Miller T., Kim A.B. and Roberts J.M. (2018)., Index of economic freedom., The Heritage Foundation.
- Raheem I.D., Isah K.O. and Adedeji A.A. (2018)., Inclusive growth, human capital development and natural resource rent in SSA., Economic Change and Restructuring, 51(1), 29-48.
- Islam M.R. (2018)., Wealth Inequality, Democracy and Economic Freedom., Journal of Comparative Economics.