Influence of the degree of economic freedom on labor productivity in Latin America

Mendoza León, Juan Celestino (2026) Influence of the degree of economic freedom on labor productivity in Latin America. Tendencias, 27 (1). pp. 122-147. ISSN 2539-0554

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Resumen

Introduction: Latin American countries exhibit considerable heterogeneity in terms of labor productivity levels and the degree of economic freedom. Objective: To analyze the influence of economic freedom on labor productivity in Latin American countries. Methodology: Panel data from 20 countries covering the period 2014 -2023 were used, applying clustered ordinary least squares, fixed and random effects models. Results: Economic freedom has a positive effect on labor productivity. The countries with the highest levels of productivity are those with the highest degree of economic freedom. Key indicators include property rights, control of corruption, public spending, fiscal health, entrepreneurialfreedom and monetary independence. Discussion: A greater degree of economic freedom fosters labor productivity, although the relationship varies between countries. The interaction with other factors such as educational quality and infrastructure also influences the results. Although economic freedom is key, other complementary elements must be considered for a more significant impact. Conclusions: Economic freedom is crucial to increase labor productivity. Economic policies should focus on creating a favorable environment for investment and innovation.

Tipo de Elemento:	Artículo
Palabras Clave:	capital; market economy; labor economics; research and development; labor; economic model.
Asunto:	Ciencias Sociales > HC Economic History and Conditions
Division:	Revistas > Tendencias
Depósito de Usuario:	FACEA Fac. de Ciencias Econ. y Aministrativas
Fecha Deposito:	16 Feb 2026 16:44
Ultima Modificación:	16 Feb 2026 16:44
URI:	http://sired.udenar.edu.co/id/eprint/17653

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