Çetin, Rahmi

In this study, the impact of economic freedom on income level of 81 countries was investigated by utilizing fixed and random effects models on panel data for the period 2000-2010. This paper estimates per capita GDP as functions of economic freedom (developed by Heritage Foundation), investment, and population growth. The results of the fixed effect model indicate that both the level and the change of economic freedom index assert positive and significant effects on the level of income.