Published on March 2021 | Institutional Economics

Does economic freedom enhance quality oflife inAfrica?
Authors: Olalekan Charles Okunlola; Anthony E. Akinlo
Journal Name: International Review of Economics
Volume: 13 Issue: 1 Page No: 1-30
Indexing: SCI/SCIE,SCOPUS,Web of Science,Google Scholar,PubMed,DOAJ,SCIMAGOJR
Abstract:

This paper examines the role that the level and changes in economic freedom play in promoting quality of life in Africa over the period 1985–2016. It develops a com‑ posite index for quality of life to capture the different dimensions of quality of life. Employing the generalised method of moments (GMM) estimation technique, the results indicate a positive effect of economic freedom on the quality of life. How‑ ever, change in economic freedom has an inverse relationship with the quality of life in Africa. The GDP growth and foreign aid have positive effects on the quality of life index and its various indicators. The findings highlight the need for African countries to establish fiscal and monetary policies suitable for improving economic freedom. It also emphasizes the need for African countries to reduce international trade barriers and open up African economies to foreign trade. This will bring about increased economic growth and improved quality of life.

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