The effects of negative and positive freedom on economic growth, human development and poverty.

Freedom is argued by some to have instrumental as well as intrinsic value. Economic and political freedoms are argued to have effects on various economic outcomes in previous research. The definition of freedom is unclear and implied by the components of the economic or political freedom index used in the study. Although the concept of freedom continues to be debated and contested, this thesis employs Isaiah Berlin's dichotomy of positive and negative freedom. Berlin defines negative freedom as freedom from government and coercion and positive freedom as the ability to participate in the governance of oneself. This study indicates that the effects of negative and positive freedom on economic growth are statistically non-significant. The human development model is sensitive to the inclusion of property rights and thus not stable. Both positive and negative freedoms have a positive, statistically significant and robust relationship with reductions in absolute poverty. --Leaf. ii.