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Derives an indicator for economic freedom based on personal choice, protection of private property, and freedom of exchange. Considers levels and trends in economic freedom, and their correlation with economic growth in 103 countries.
The World Survey of Economic Freedom re-ports on eighty-two nations in the Americas, Western Europe, Central East Europe, and NIS (Newly Independent States), Asia, the Middle East, and Africa surveyed by Freedom House during 1995. For each nation, background information is provided, as well as answers to questions about freedom to hold property, to earn a living, to operate a business, to invest one's earnings, to trade internationally, to participate in a market economy, and freedom from unreasonable government interference in the economy. By focusing attention on nations in which economic freedom is denied, and in which individuals are not free to buy, sell, and trade in a market economy, this Freedom House survey advances the cause of democracy.
The Economic Freedom of the World (EFW) index was first produced by Gwartney, Block, and Lawson (Economic Freedom of the World: 1975-1995; 1996) and has been updated annually since. During this period, the EFW index has been cited in hundreds of academic articles. Here, we provide an accounting and description of this literature. Of 402 articles citing the EFW index, 198 used the index as an independent variable in an empirical study. Over two-thirds of these studies found economic freedom to correspond to a “good” outcome such as faster growth, better living standards, more happiness, etc. Less than 4% of the sample found economic freedom to be associated with a “bad” outcome such as increased income inequality. The balance of evidence is overwhelming that economic freedom corresponds with a wide variety of positive outcomes with almost no negative tradeoffs.
The World Survey of Economic Freedom re-ports on eighty-two nations in the Americas, Western Europe, Central East Europe, and NIS (Newly Independent States), Asia, the Middle East, and Africa surveyed by Freedom House during 1995. For each nation, background information is provided, as well as answers to questions about freedom to hold property, to earn a living, to operate a business, to invest one's earnings, to trade internationally, to participate in a market economy, and freedom from unreasonable government interference in the economy. By focusing attention on nations in which economic freedom is denied, and in which individuals are not free to buy, sell, and trade in a market economy, this Freedom House survey advances the cause of democracy.
Freedom in the World contains both comparative ratings and written narratives and is now the standard reference work for measuring the progress and decline in political rights and civil liberties on a global basis.
The index published in Economic freedom of the world measures the degree to which the policies and institutions of countries are supportive of economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of privately owned property.