This paper's main idea is that Synechi causes prosperity. I define "Synechi" as "nation political leader implemented and reinforced a series of free-market policy continuously without substantial reverse for at least 20 years." I use: (1) the difference-in-difference method, using West Germany, South Korea, Botswana as the treatment group and East Germany, North Korea, and Zimbabwe, as the control group, to mimic "natural experiment", (2) Direct Method of Agreement from data of 52 countries and (3) Method of Difference form data of 24 countries and (4) Joint Method of Agreement and Difference, from data of 66 countries. I use Maddison Project Database data in the long- run GDP per capita published in early 2018 and other data sources. This approach is novel since previous papers only show that the free-market correlates with prosperity.
JEL Classification:
F59 O10 O11 O20 O21 POO