Received:
2023-09-12 | Accepted:
2023-11-29 | Published:
2023-12-30
Title
Empirical analysis of the impact of economic freedom on economic growth in the Slovak Republic, the Czech Republic and Singapore
Abstract
A quality business environment is considered a key factor that affects the competitiveness and growth of the market economy. The article provides an evaluation of the development of the business environment in the Slovak Republic and its comparison with selected countries using the Index of Economic Freedom from the Heritage Foundation. The aim is to verify the influence of individual sub-indexes of the Index of Economic Freedom on the economic growth of the Slovak Republic, the Czech Republic and Singapore, measured by the GDP per capita growth (%), through a panel analysis. By choosing these three countries over a period of 20 years, the article brings new knowledge that appropriately complements already conducted empirical studies in the researched area. As a result, two of the twelve sub-indexes of the economic freedom index, namely the labor freedom sub-index and the monetary freedom sub-index, demonstrated an impact on the economic growth of the surveyed countries. In addition to them, the dependent variable is also influenced by the control variables foreign direct investment and gross capital formation. However, economic freedom is a complex indicator, so importance should also be attributed to other sub-indexes of the Index of Economic Freedom as a manifestation of the synergy of all its basic elements in the creation of macroeconomic policy.
Keywords
index of economic freedom, GDP per capita growth, business environment
JEL classifications
A13
, O11
, O43
, O47
, P48
URI
http://jssidoi.org/jesi/article/1150
DOI
Pages
419-432
Funding
The research was funded by Grant of Cultural and Education Grant Agency of the Ministry of Education, Science, Research and Sport of the SR No.: 023-4/2023 “Corporate Finance: The Basics” and APVV-20-0338 “Driving forces of economic growth and survival of firms in the sixth K – wave”.
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
References
Ahmadpour, М., JafariSamimi, А., & Refaei, Р. (2013). Economic freedom and economic growth: the case of OPEC. Journal of Human and Social Science Research. 1(1), 63-71.
Search via ReFindit
Ahmed, S., Mushtaq, M., Fahlevi, M., Aljuaid, M., & Saniuk, S. (2023). Decomposed and composed effects of economic freedom on economic growth in south Asia. HELIYON, 9(2) http://doi.org/10.1016/j.heliyon.2023.e13478
Search via ReFindit
Akin, C. S., Aytun, C., & Aktakas, B. G. (2014). The impact of economic freedom upon economic growth: an application on different income groups. Asian Economic and Financial Review, 4(8), 1024 -1039.
Search via ReFindit
Alexandrakis, C., & Livanis, G. (2013). Economic Freedom and Economic Performance in Latin America: A Panel Data Analysis. Review of Development Economics, 17(1), 34-48. http://doi.org/10.1111/rode.2013.17.issue-1
Search via ReFindit
Ang, J., & Patalinghug, J.C. (2021). Property rights and economic growth: A dynamic GMM analysis. Economics Bulletin, 41(3).
Search via ReFindit
Bayar, Y., & Aytemiz, L. (2015). Impact of economic freedom, political stability and economic growth in the USA on emerging Asian economies. Actual problems of economics, 6 (168), 62-73.
Search via ReFindit
Brkiċ, I. (2020). The relationship between economic freedom and economic growth in EU countries: doctoral thesis. Castellón de la Plana: 2020, 106-107.
Search via ReFindit
Cebula, R. (2013). Which economic freedoms influence per capita real income?. Applied Economics Letters, 20(4), 368-372. http://doi.org/10.1080/13504851.2012.707768
Search via ReFindit
Cebula, R., & Mixon, F. (2012). The impact of Fiscal and Other Economic Freedoms on Economic Growth: an empirical analysis. International Advances in Economic Research, 18, 139-149. http://doi.org/10.1007/s11294-012-9348-1
Search via ReFindit
Cebula, R., Clark, J.R., & Mixon, F. (2013). The Impact of Economic Freedom on Per Capita Real GDP: a study of OECD nations. Journal of Regional Analysis and Policy 1(43), 34-41.
Search via ReFindit
Cloyne, J., Dimsdale, N., & Postel-Vinay, N. (2023). Taxes and Growth: New Narrative Evidence from Interwar Britain. Review Of Economic Studies, http://doi.org/10.1093/restud/rdad081
Search via ReFindit
Dia, I., & Ondoa, H.A. (2023). Does Economic Freedom Improve FDI Inflows in Sub-Saharan Africa? Journal of Economic Integration. 38(3) 383-410 http://doi.org/10.11130/jei.2023.38.3.383
Search via ReFindit
Doucouliagos, C., & Ulubasoglu, M.A. (2006). Economic freedom and economic growth: Does specification make a difference? European Journal of Political Economy, 22(1), 60-81. https://doi.org/10.1016/j.ejpoleco.2005.06.003
Search via ReFindit
Erdal, F. (2004). Economic Freedom and Economic Growth: a time series evidence from Italian economy. https://www.etsg.org/ETSG2004/Papers/erdal.pdf
Search via ReFindit
Espich, D., Ceretta, P.S., & Von Ende, M. (2023). Impact of economic freedom on economic growth. Revista De Gestao E Secretariado-Gesec, 14(6), 9615-963. http://doi.org/10.7769/gesec.v14i6.2317
Search via ReFindit
Hall, J. C., & Lawson, R. A. (2014). Economic freedom of the world: An accounting of the literature. Contemporary Economic Policy, 32(1), 1-19. https://doi.org/10.1111/coep.12010
Search via ReFindit
Hanke, S. H., & Walters, S. J. (1997). Economic freedom, prosperity, and equality: A survey. Cato Journal, 17(2), 117-146.
Search via ReFindit
Heckelman, J. C., & Stroup, M. D. (2000). Which Economic Freedoms Contribute to Growth?. Kyklos, 53(4), 527-544. http://doi.org/10.1111/1467-6435.00132
Search via ReFindit
Henri, A.O., & Mveng, S.A (2023). Economic Freedom and Productivity in Africa. Journal of The Knowledge Economy http://doi.org/10.1007/s13132-023-01371-0
Search via ReFindit
Khyareh, M.M., & Zamani, M. (2023). Economic freedom, entrepreneurship and economic growth: evidence from panel data. Journal of Developmental Entrepreneurship, 27(4). http://doi.org/10.1142/S1084946722500273
Search via ReFindit
Kovačević, S., & Borović, Z. (2014). Economic freedom and economic performance in former socialist countries-panel approach. Proceedings of the Faculty of Economics in East Sarajevo, 1(9), 19-26. http://doi.org/10.7251/ZREFIS1409019K
Search via ReFindit
Lach, B., & Malaga, K. (2023). Changes on economic freedom in 11 post-socialist countries of Central-Eastern and South-Eastern Europe in 1996-2022. Ekonomia I Prawo-Economics and Law, 22(2), 251-274. http://doi.org/10.12775/EiP.2023.015
Search via ReFindit
Murphy, RH (2023). Steady state economic freedom. Economics and Business Letters, 12(2),132-136. http://doi.org/10.17811/ebl.12.2.2023.132-136
Search via ReFindit
N'Zue, F. (2011). Economic freedom and performance in ECOWAS countries: A dynamic panel data approach. Africa Journal of Economic Policy, 18(2), 28-53.
Search via ReFindit
Scully, G. W., & Slottje, D. J. (1991). Ranking economic liberty across countries. Public Choice, 69(2), 121-152. https://doi.org/10.1007/BF00123844
Search via ReFindit
Sirbu, A.C., Iacobuta-Mihaita, A.O., Asandului, M., & Brezuleanu, M.M. (2023). Effects of Economic Freedom on Subjective Well-Being. Scientific Annals Of Economics And Business, 70, 85-97. http://doi.org/10.47743/saeb-2023-0015
Search via ReFindit
The Heritage Foundation 2023. Index of Economic Freedom. https://www.heritage.org/index/about
Search via ReFindit
Yang, Z.R., Vitenu-Sackey, P.A., Hao, L.Z., & Tao, Y.Q. (2023) Economic freedom, inclusive growth, and financial development: A heterogeneous panel analysis of developing countries. PLOS ONE, 18I(7). http://doi.org/10.1371/journal.pone.0288346
Search via ReFindit
RSS 1.0
