Dictatorship Doesn’t Promote Prosperity

Source: EconLog
by Pierre Lemieux

“It is a relatively uncontroversial result, confirmed by a number of econometric studies, that economic freedom has a positive effect on incomes (GDP per capita). An econometric study to appear in the European Journal of Political Economy, ‘Revisiting the Relationship Between Economic Freedom and Development to Account for Statistical Deception by Autocratic Regimes,’ argues that the relationship is biased downward by dictatorial regimes because their GDP figures are overestimated. Such regimes restrict economic freedom and have an interest in hiding the consequences from their subjects. Moreover, the constraints a dictatorial regime faces are much reduced by the absence of a free press and of periodical elections that could remove him.” (06/25/24)