For over a decade, The Wall Street Journal and The Heritage Foundation, Washington's preeminent think tank, have

Question:

For over a decade, The Wall Street Journal and The Heritage Foundation, Washington's preeminent think tank, have tracked the march of economic freedom around the world with the influential Index of Economic Freedom. The Index has measures for 10 freedoms

—from property rights to entrepreneurship—in 184 countries.

Economists and international scholars place considerable importance on the level of economic freedom and its impact on economic growth and development within a nation. Nations are ranked as either (1 )

Free, (2) Mostly Free, (3) Moderately Free, (4) Mostly Unfree, or (5)

Repressed.

Data have been collected on the Index rankings of a random sample of nations seen here and the growth rate of their GDP from 2010 to 2011.

Based on these data, construct a regression model to measure whether the level of freedom can explain GDP growth rates. Comment on your findings. What conclusions can you draw? image text in transcribed