Economic growth and the dynamic efficiency theory
Armando José Urdaneta Montiel
Retos: Revista de Ciencias de la Administración y Economía
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Abstract
This research analyzes economic growth from the theory of dynamic efficiency, using a global indicator of competitiveness and one of global economic freedom, starting from the hypothesis that greater economic freedom translates into greater competitiveness and economic growth. The dynamic efficiency supported by authors of the Austrian economy aims to explain how the increase in profitability and productivity in the production of goods and services depends mainly on business creativity. From the methodological point of view, the study is descriptive, correlational and prospective, using panel data from the 20 largest economies in the American continent. The study analyzes the main macroeconomic indicators, the quality of institutions, health, primary education, infrastructure and the degree of business innovation, correlated with variables that measure the level of freedom to do business, fiscal pressure, size of government, security Legal, competitiveness is measured through the factors that determine the productivity of an economy. Among the main results, it was found that the index of economic freedom and the GDP per capita show a bidirectional causal relationship in the Granger sense, thus revealing an endogenity relationship between both variables. The degree of cointegration, causality and explanation of competitiveness and economic freedom with economic growth was demonstrated.
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