Economic Freedom and Economic Development

This chapter focuses on the linkage between economic freedom and sustainable growth in 162 countries using panel data for the period 2003–2020. The aim of this chapter is to understand the role of economic liberty in the sustainable growth of the population. The data for this chapter is derived from the Fraser Institute and World Bank databases. The analysis was applied through the usage of fixed-effects and random-effects models, with the Hausman test to determine the most suitable model. Moreover, the results highlight that the relationship between economic growth and certain economic freedom parameters—security property rights, a stable monetary system, and sound regulations—are highly positive and align with the established economic theories.