The Effect of Economic Freedom on Export Sophistication in OECD Countries

Abstract

This study investigates the effect of sub-indices of economic freedom namely, rule of law, government size, regulatory efficiency, and open markets on export sophistication for OECD countries for the period 2005-2019. According to the Generalized Moments Method (GMM) results, the rule of law, government size and open markets positively affect export sophistication. These results suggest that OECD countries should increase the level of rule of law, government size and open markets to enhance export sophistication.