Abstract:

Unemployment and underemployment are key distress among the masses of developing and less developed nations. Several elements may be responsible for this sizzling problem. Among them, one is less economic freedom. So, this study is intended particularly, to check the impact of economic freedom on employment in Asian countries. This study used panel data from 33 Asian countries for empirical investigation. Economic equations are estimated with fixed effect and GMM approaches. Both econometric approaches revealed that Economic freedom has a positive and statistically significant impact on employment in Asia. Moreover, the interactive effect of economic freedom and investment is positive and significant. Likewise, the joint impact of economic freedom and FDI is also significant and supportive for employment. FDI will be more effective in the presence of economic freedom. Our study proposed the need for economic freedom to boost the level of employment, investment, and other economic activities in Asia.

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