Impact of Economic and Political Freedom on Economic Growth in Asian Economies

Abstract

The present study investigates the impact of economic and political freedom on economic growth in Asian economies. Thirty Four Asian countries have been included in empirical analysis over the period of 1995-2018, on annual basis. Two different econometric techniques, fixed effect model and GMM, have been applied to see empirical analysis. Economic freedom has positive and significant influence on economic growth. Political rights and civil liberties have optimistic and considerable influence on economic growth. The impact of human capital is positive and significant. The roles of physical capital and FDI are positive and considerable. The results of GMM are almost identical with the outcomes of fixed effect model. The impression of lagged dependent variable is optimistic and significant. At this juncture, current economic growth is based on the previous year’s economic progress.