International Review of Economics

, Volume 59, Issue 3, pp 231–243

Lessons from the experience of OECD nations on macroeconomic growth and economic freedom, 2004–2008


DOI: 10.1007/s12232-012-0162-0

Cite this article as:
Cebula, R.J. & Clark, J.R. Int Rev Econ (2012) 59: 231. doi:10.1007/s12232-012-0162-0


This study empirically investigates the impact on per capita real economic growth of each of the ten measures of economic freedom computed annually by the Heritage Foundation. Within the context of the Random Effects Model, panel least squares estimations using a 5-year panel (2004 through 2008) dataset for the OECD nations as a group reveal that the percentage growth rate in the purchasing-power-parity adjusted per capita real GDP for OECD nations was, at the 5 % statistical significance level or better, an increasing function of at least seven of the ten economic freedom measures. The results underscore the critical role that economic freedom plays in a nation’s economic growth and prosperity and the importance of pursuing policies that are consistent with increasing economic freedom.


Economic freedomPercentage real per capita GDP growthPublic policy

JEL Classification


Copyright information

© Springer-Verlag 2012

Authors and Affiliations

  1. 1.Finance and Accounting Department, Davis College of BusinessJacksonville UniversityJacksonvilleUSA
  2. 2.University of Tennessee-ChattanoogaChattanoogaUSA