Capitalism and Economic Growth Across the World
11 Pages Posted: 20 Sep 2016
Date Written: September 18, 2016
Capitalism is defined here by the universal concept of private property, independent of time and geography, in purely economic terms, free from political ideology. Capitalism thus defined is antithetical to socialism, for which a metric has been introduced by the size of government measured as government total expenditure relative to gross domestic product. For 40 largest countries in the International Monetary Fund (IMF) database, it is shown statistically that capitalism, between 2003 and 2012, is positively correlated significantly to economic growth.
Keywords: Capitalism, Socialism, Government, State, Economic Growth
JEL Classification: E60, O11, Q43, P10, P20, P35
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