Document Type

Working Paper

Publication Date

2017

College/Unit

College of Business and Economics

Document Number

17-26

Department/Program/Center

Economics

Abstract

We investigate the effects of economic freedom (marketization) on governance efficiency defined with the newest provincial level economic indicator data (NBSC, 2017) and economic freedom data (Fan et al., 2017) from 2008 to 2014 in China. With two different measures, the results suggest that economic freedom is positively correlated with governance efficiency. Moreover, the liberalization and marketization progress in the “factors market” is the single most significant area for both governance efficiency measures, while other areas like “market intermediary & legal system” have no significant effects.

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