The role of economic freedoms in sustainable economic growth: Analysis of selected country groups

This study examines the impact of economic freedoms on sustainable economic growth in a comparative manner for the E7 and the G7. Data on economic freedoms, human rights, regulatory quality, labor, capital, carbon dioxide emissions, and trade openness, compiled from the World Bank, Heritage Foundation, and V-Dem databases, covering the period 1995–2023, are collected using panel data. The findings indicate that regulatory quality and capital stand out as the primary determinants of sustainable growth in the E7 countries, while labor has a stronger impact in the G7 countries. Economic freedoms did not have a statistically significant impact on growth in either group. Furthermore, the positive impact of carbon dioxide emissions on growth reveals environmental risks to sustainability.