Modeling Economic Output and Economic Growth with respect to Economic Freedom : A comparative study of developing and developed countries

Abstract: This Bachelor thesis is an empirical comparative study examining the relationship between economic performance and economic freedom in two sample groups consisting of 25 developed and 25 developing countries respectively. The relationship is analyzed with results from ordinary and robust linear regressions using an extended Solow-Swan exogenous growth model. The obtained results show a significant positive correlation between economic freedom and economic output (GDP/capita), while the correlation is shown to be insignificant for economic growth.