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The role of economic freedom in explaining penetration of consumer durables

By John B. Ford, Kiran W. Karande and Bruce M. Seifert

Abstract

This study examines the link between economic freedom (a measure of government intervention) and the penetration of three durable goods (televisions, radios and automobiles) across countries. After controlling for the influence of income, there is a significant relationship between greater amounts of economic freedom and durable penetration for these three products. Practical implications are provided for both governments and global marketers.

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