10 Reasons to Love the Free Market
4. The free market improves economic performance
The free market leads to trade liberalization, which reforms the inefficient economy and lowers barriers to international trade. The evidence consistently shows that the free market reforms improve economic performance. According to one study, which examined 141 trade liberalizations and compared economic performance before and after liberalization (after controlling for relevant variables), “Per capita growth of countries liberalization was some 1.5 percentage points higher than before liberalization, and investment rates were 1.5- 2.0 percentage points higher.”
Investment guarantees better performance for the economy, but it only comes to places with a good economic climate, since the private investors shy away from the overly regulated countries.
