Abstract
This paper applies principal component analysis to the institutional dimensions which underlie Economic Freedom of the World and Worldwide Development Indicators in an exploratory manner to shed additional light on earlier literature. Using the data together, the first four principal components roughly correspond to, respectively, good governance, weak liberalizations, illiberal democracies, and the institutional environment of Latin American. Results from the exercise speak to methodological concerns regarding the inclusion of the size of government in measures of economic freedom, while identifying one dimension of institutions (weak liberalizations) that is nonobvious and conceptually useful. This exercise suggests that interpretations of similar analysis should be altered considerably.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
