An Empirical Analysis of Relationship between Economic Growth and Freedom: A Cross Country Study using Machine Learning Approach

While there is sufficient exploration on the role of labour, capital and technology as determinants of economic growth, less is analysed on the role of economic and political freedom as factors influencing the economic growth of a country. The economic growth of some countries is high and in some low. The reason for this variation has been a matter of discussion in economic literature. In this paper, the relationship between economic growth and economic freedom along with labour and capital is analysed. The multi-linear regression model is used to estimate the relationship. The results obtained indicate that there exists a significant relationship between economic growth, economic freedom, labour and capital. The R
²
score was 0.929 which states that the dependent variable is explained well by the independent variables.