Measuring the Relationship between Freedom and Prosperity across the World

Jake Dubuque '07, Economics major, and
Dr. Reza Ramazani, Professor of Economics,
with Dr. Herbert Kessel, Professor of Economics 

What does a person reflect on when thinking of the world at large? The number 152 comes to mind for Jake Dubuque. During the summer of 2006 he embarked on a research journey that would wind up painting a vivid picture of how 152 countries compare to one another according to their political and economic systems.

Funded by a $2,500 stipend from the Social Science Research Center, Dubuque set out to measure the relationship between freedom and prosperity. Many political experts over the years have investigated the issues surrounding this relationship, but few studies have addressed the problems using a sample size greater than Dubuque’s selected group. For his work, Dubuque gathered a vast array of theoretical and empirical research. He read numerous books and journals, analyzed political and economical freedom indexes, and studied data on Gross Domestic Product from the World Bank.

Dubuque’s research resulted in a 40-page paper. He summarized his findings during a presentation to students and faculty as part of the Spring 2007 Social Science Research Center Seminar Series. Dubuque said he discovered that free trade, strong private property rights, and low corruption all relate to a country’s economic wealth. He used empirical data to show that a lack of economic and political freedom leads to poverty and high unemployment. 

Dr. Reza Ramazani, professor of economics and Dubuque’s faculty sponsor, called Dubuque’s study a “welcome addition” to the issue of global poverty. “This is an important contribution because it challenges the popular notion that globalization and international trade are the main causes of global poverty,” Ramazani said.

Dubuque expressed a similar view in regards to efforts made by United States to assist undereveloped countries. Referencing his research, he suggested that “if America wants to help countries develop, we should continue to press for greater freedoms abroad and hold foreign governments accountable.”