Academic freedom, institutions, and productivity

The issue of what explains differences in the wealth nations is one most classic economics. We propose de facto academic freedom as an explanatory variable. main idea that such allows for development new useful knowledge through research unconstrained by powerholders business and politics. Using a global panel-data set, encompassing up to 127 countries over period 1960–2015, we show there indeed positive relationship between both labor total-factor productivity growth. However, this effect only appears long quality legal system sufficiently high. suggest because institutional offers protection stimulates entrepreneurs make use produced academia innovative activities, which turn benefits