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In the next paragraph and before presenting the results of our analysis, the variables

used for our regression are explained in more depth: 


 Personal Freedom (dependent variable) 
Our dependant variable is the degree of personal freedom by country around the
world which is respresented by the personal freedom index. The latter ‘captures the
degree to which people are free to enjoy the major freedoms often referred to as civil liberties—
freedom of speech, religion, association, and assembly— in the countries’ (Cato). But also ‘indicators
on rule of law, crime and violence, freedom of movement, and legal discrimination against same-sex
relationships’(Cato). The personal freedom index is measured in a scale from 0 to 10,
where 10 represents the highest degree of freedom and ranks countries from
2008, the earliest year for which a robust enough index could be produced. In
our research, we used a database of the personal freedom index composed of
159 countries (see table), from 2008 to 2015 and co-published by the Cato
Institute, the Fraser Institute, and the Liberales Institut at the Friedrich
Naumann Foundation for Freedom.

Which takes into consideration two major aspects: Legal, protection and security but
also specific personal freedoms. The indicators of the personal freedom index
are (quote). More countries have been added to the dataset since the creation of the
index in 2008 (Table). The personal freedom index is measured in a scale from 0 to
10, where 10 represents the highest degree of freedom. According to the authors of
the Human Freedom report, countries that are listed in the top quartile
of freedom enjoy a significantly higher per capita income. Also, the correlation
matrix (Table) shows a strong correlation of the personal freedom index with
education and economic freedom (respectively of 0.69 and 0.63) 

 Foreign Direct Investment 

Our independant variable is Foreign Direct Investment which is the sum of equity


capital, reinvestment of earnings, other long-term capital, and short-term capital as
shown in the balance of payments (world bank group). In order to determine the
importance of the level of FDI in each country, we used the net average of foreign
direct investment in relation to gross domestic product. Thus, our dataset for FDI to
GDP is retrieved from (source) that provide data for xxx and extends from 2008 to
2015.

Generally, the presence of MNCs in a country can be measured by the level of the


company’s FDI in this country. Also, the importance of this presence can be
interpreted as the level of FDI in relation to the GDP of this country.
Thus, our independent variable is the net average of foreign direct investment in
relation to gross domestic product. FDI constitues the sum of equity capital,
reinvestment of earnings, other long-term capital, and short-term capital as shown in
the balance of payments. For this purpose, we have a database that extends from
2008 to 2015 and covers a number of countries and give source. 
 Control for Education 
Education not only fosters the acquisition of skills and knowledge, but also
sustains liberalization values in the form of autonomy and personal
freedom (Ryan RM, Niemiec CP (2009). Which allow members of society to open
their eyes and to worry more and more about their individual and collective freedoms.
To this end, the recognition of the freedom of all is to education more than just a
value among others, it is even a foundation, to deny it, is to deny education as a
whole.( Grégoire Poulain)
To control for the impacts of education on personal freedom we used the education
index calculated using Mean Years of Schooling and expected Years of schooling.
The dataset used for our research is retrieved from the Human Development Report.
Providing the education level of 187 countries, from 2008 to 2015.
 Control for democracy  

Democracy allows citizens to exercise their popular sovereignty through legitimately


elected representatives(Mark Bevir). Parallelly, as kant mentions in his book of the
methaphysics of morals ; no one becomes free internally without external freedom.
For this purpose democracy has the legitimate authority to provide public freedoms
guaranteed by the constitution and a judicial power to enforce them. Thus, despite
the fact that complying with a democratic regime may seem like a loss of individual
freedom. It remains essential for equitable and inclusive human development by
offering people the opportunity to make changes and choices to improve their living
conditions and defend their personal freedom. 
To control for the impact of democracy, we used ‘The Polity IV Project’ which
measures the level of democracy based on an evaluation of that
state's elections for competitiveness and openness, the nature of
political participation in general, and the extent of checks on executive
authority (Monty G. Marshall, Keith Jaggers). In our research, we used a dataset of 167
countries from 2008 to 2015. With an index that captures the regime authority
spectrum on a 21-pont scale ranging from -10 (hereditary monarchy) to +10
(consolidated democracy) produced by the Center for Systemic Peace.

Despite the fact that complying with a democratic regime may seem like a loss of
individual freedom. No one becomes internally free without external freedom.
DemocracyDue to its legitimacy, democracy governs the relationships between the
members of a society. By creating the public freedoms guaranteed by the constitution
and a judicial power to enforce them. To this end, democratic governance is essential
for equitable and inclusive human development. It offers people the opportunity to
make changes and choices to improve their living conditions and defend their
personal freedom. 
To control for the impacts of democracy, we used ‘The Polity IV Project’ dataset
which provide data for 167 countries in 2017 and which is produced and used by the
Center for Systemic Peace. The "Polity Score" is an index that captures the regime
authority spectrum on a 21-pont scale ranging from -10 (hereditary monarchy) to +10
(consolidated democracy). 
 Control for economic freedom 
In practice, individual freedom and economic freedom generally go hand in hand. For
this reason, they are highly correlated. Indeed, the most obvious advantage of a
regime of economic freedom is that it is most likely to lead to general prosperity and
thus to high or increasing incomes and consumption levels for most of the population.
Therefore, as Amartya Sen, Nobel Laureate in Economics points out, that greater
economic freedom makes it possible to eliminate various types of unfreedom such as
hunger and poverty. Therefore, the more important a country's economic freedom is.
The easier it becomes for its inhabitants to work, save, consume and thus live in
dignity and peace. (Anthony Kim) 
To control for the impact of economic freedom, we used the Economic Freedom
index which takes into consideration forty-two data points to construct a
summary index and to measure the degree of economic freedom in five broad
areas (Size of Government, Legal System and Property Rights,
Sound Money, Freedom to Trade Internationally, Regulation).
Finally, the economic freedom index is represented in a scale similar to personal
freedom of 0 to 10, where 10 represents the highest freedom score. Providing data
for 159 countries by the Cato Institute, the Fraser Institute, and the Liberals Institut at
the Friedrich Naumann Foundation for Freedom. 

http://www.cefedem-aura.org/sites/default/files/recherche/memoire/Poulain.pdf
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0199560#pone.0199560.ref005

https://sk.sagepub.com/books/key-concepts-in-governance/n42.xml

https://www.heritage.org/report/the-link-between-economic-freedom-and-human-rights

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