Economic Freedom, Trade, Geographic Distance and Institutional Quality in Shaping Economic Developme

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Economic Freedom, Trade, Geographic Distance and
Institutional Quality in Shaping Economic
Development
Economic Development
Endogenous
Geographic Distance
Exogenous
Institutional Quality
Economic Freedom
Endogenous
Trade
Geographic Proximity
Exogenous
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Hypotheses
H1 Spatially closer countries to one of the
major world financial centers have
advantage in terms of economic
development. H2 Institutional quality
positively shapes economic
performance H2 Economic freedom positively
affects economic performance H3
Countries that engage in substantial trade with
other countries tend to be more
economically developed H5 Neighboring
countries tend to have the same or close
characteristics in terms of economic development,
trade, economic freedom and
institutional quality to their spatially
adjacent countries.
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Table A. Global Moran I Results
I n??wij (xi - x-bar) (xj-x-bar) W?(xi-x-bar)
²
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Map 6. Local Morans Z-Score for GDP Per Capita
(Robinson Projection)
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Map 7. Local Morans Z-Score for Economic
Freedom(Robinson Projection)
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Map 8. Local Morans Z-Score for Trade/GDP
(Robinson Projection)
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Map 9. Local Morans Z-Score for Corruption
(Robinson Projection)
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Table B. OLS Results
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Table C. OLS Results
Significance at .05 level Significance at
.01 level
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