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Fall 2006
ISSN 0890-913X
Volume 22, Number 1

Are We Taking Certain Liberties by Assuming a Relationship Exists Between Economic and Political Freedom?

John A. Tures, LaGrange College
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JournalofPrivateEntetprise,VolumeXXII,Number1,Fall2006AreWeTakingCertainLibertiesbyAssumingaRelationshipExistsBetweenEconomicandPoliticalFreedom?JohnA.TuresLaGrangeCollegeScholars(Vega-GordilloandAlvarez-Arce,2003)havedebatedtheconnectionbetweeneconomicfreedomandpoliticalfreedom.Empiricalstudiesofsuchargumentshavenotconclusivelyfoundsupportforthepresenceorabsenceofsucharelationship.Istherelationshipbetweenthevariablesharmoniousorharmful?Usingmultiplemeasuresofdemocracy,alinkisfoundbetweeneconomicandpoliticalfreedom.However,thefindingsareweaker,thoughsignificant,forasampleofdevelopingcountries.Thereisalsoahigherthanexpectednumberofcaseswheregovernmentsprovideonefreedom,butpartialelementsofanotherfreedom.Thismayexplainthedifferencesinresultsachievedbyscholarsanalyzingtheseties.LiteratureReviewOptimistsandPessimistsEvaluateEconomicandPoliticalFreedom'sRelationsh0Severalscholarshaveproducedoptimisticassessmentsoftiesbetweeneconomicandpoliticalfreedom.MiltonFriedman(1962)hypothesizedthateconomicandpoliticalfreedomweremutuallyreinforcing,afindingconfirmedbyVega-Gordt/loandAlvarez-Arce(2003).Mbaku(2003)arguesthatwritingdemocraticconstitutionsnotonlyreducesgovernmentalopportunisticbehavior,buthelpseconomicfreedom.Griswold(2003)claimsitisdifficultforgovernmentstograntJohnA.Tures22
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