Title: Convergence analysis on ten sub-indexes of economic freedom

Authors: Yu Sang Chang; JiHye Kim; Young Soo Kim

Addresses: Gachon University, 1342 Sungnamdaero, Sujeong-Gu, Seongnam-Si, Gyounggi-Do, 461-601, Korea ' Soongsil University, 369 Sangdo-Ro, Dongjak-Gu, Seoul, 156-743, Korea ' Soongsil University, 369 Sangdo-Ro, Dongjak-Gu, Seoul, 156-743, Korea

Abstract: The purpose of this paper is to examine the transition of ten sub-indexes of economic freedom among 130 countries in the world. The three central questions of this study are: do economic freedom sub-indexes converge? Do some sub-indexes of economic freedom display more clear-cut convergence when their index points are increasing over time? Which clusters of economic sub-indexes display faster rate of convergence? Analyses of sub-indexes of economic freedom are critical because each of these individual sub-indexes independently determines final value of the overall index. The answer to the first question varies by each specific sub-index. The answer to the second question is that countries with increasing index points display much more clear-cut convergence. As for the third question, those sub-indexes receiving high index points from large number of countries exhibit faster rate of convergence. Several policy implications are discussed in conclusion.

Keywords: economic freedom indexes; sigma convergence; beta convergence; sub-indexes.

DOI: 10.1504/IJPP.2015.068849

International Journal of Public Policy, 2015 Vol.11 No.1/2/3, pp.47 - 72

Received: 01 May 2014
Accepted: 25 Jul 2014
Published online: 15 Apr 2015 *

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