Abstract
Economic growth rates for the period 1968–1987 are analyzed for ninety countries. Culture, political and economic arrangements, and personal freedoms are statistically significant determinants of growth. Personal freedom is shown to be a normal good whose demand might be affected by cultural influences. Democracies raise personal freedoms,ceteris paribus, and, consequently, grow more quickly than non-democratic regimes. Evidence is found for the convergence hypothesis; other things equal, lower income countries grow more rapidly than higher income countries.
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The authors thank Ian McLean and an anonymous referee for helpful comments.
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Abrams, B.A., Lewis, K.A. Cultural and institutional determinants of economic growth: A cross-section analysis. Public Choice 83, 273–289 (1995). https://doi.org/10.1007/BF01047747
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DOI: https://doi.org/10.1007/BF01047747