Economic Impact Of Economic Freedom On Economic Growth

Introduction: In the last three decades the concept of economic freedom have dominated the economic theories as the best way to economic development, Many economists and politicians believe that economic freedom displays a significantly positive effect on economic growth, while others believe that the increased freedom will have a negative effects on economic growth. In addition, all of the international organizations such as the World Bank and the International Monetary Fund (IMF) encourage developing countries to follow the freedom economic policies. â€Å"Basically, the myth is that America has been founded on the free market; the government has done very little; it has thrived under free trade. But actually, if you look at the history, this is actually the country that has succeeded most with protectionist policies† Ha-Joon. Consequently, some countries achieved good results and could improve their economies. However, others became in the terrible situation. This casts some doubts abou t the economic freedom as the perfect way to improve economic activities. Hypothesis The paper tries to show whether the economic freedom policy to improve economic activity in developing countries or not. Based on the economic theory, I offer the following hypothesis and alternative hypothesis: Hypothesis (H0) Economic freedom increases economic growth. Hypothesis (H1) Economic freedom does not increase economic growth. Methodology: In this paper, weShow MoreRelated economic Essay1701 Words   |  7 Pages Globalisation - Economic Growth and Development and development indicators. â€Å"Outline the differences between economic growth and economic development. Discuss how economic development may be measured. Outline how globalisation may impact upon a nation’s development. Where appropriate make reference to a relevant case study.† Although economic growth and development are similar in meaning, they have some essential differences. 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