Effect of various dimensions of economic freedom and national culture on human development based on data of UN, Fraser Institute, Hofstede, World Bank, 1970-2019

DOI

The implementation of pro-market policies and institutions is often suggested for enhancing a country’s development. However, implementing pro-market policies and institutions has a mixed track record. Some have ascribed the bad results to the neglect of people’s predispositions, often described as culture. In this study, we argue that successful implementation of pro-market policies and institutions requires that large parts of the population know how to use the resulting freedom in a way that can bring long term benefits. A panel analysis on a sample of 67 countries from 1970 to 2019 confirms this theoretical argument. We find that Long Term Orientation increases the effect of economic freedom on income per capita, whereas Uncertainty Avoidance weakens the positive relationship between economic freedom and income per capita. The policy implication is that the introduction of free market policies and institutions will particularly foster economic development in long-term oriented societies and in societies with low Uncertainty Avoidance.

Identifier
DOI https://doi.org/10.34894/IBMS29
Related Identifier https://doi.org/10.1016/j.jce.2021.09.005
Metadata Access https://dataverse.nl/oai?verb=GetRecord&metadataPrefix=oai_datacite&identifier=doi:10.34894/IBMS29
Provenance
Creator Graafland, Johan (ORCID: 0000-0002-1497-803X); de Jong, Eelke ORCID logo
Publisher DataverseNL
Contributor Graafland, Johan; DataverseNL
Publication Year 2022
Rights This work is licensed under a CC BY-NC-ND license. For more information see https://creativecommons.org/licenses/by-nc-nd/4.0/; info:eu-repo/semantics/openAccess
OpenAccess true
Contact Graafland, Johan (Tilburg University, Tilburg School of Economics and Management, Department of Economics)
Representation
Resource Type Cross country data; Dataset
Format application/x-stata-14; application/pdf
Size 259220; 90922; 70457
Version 1.0
Discipline Agriculture, Forestry, Horticulture, Aquaculture; Agriculture, Forestry, Horticulture, Aquaculture and Veterinary Medicine; Economics; Life Sciences; Social Sciences; Social and Behavioural Sciences; Soil Sciences