The relationship between selected macroeconomic indicators and economic freedom in V4 countries

Monika Daňová,Elena Širá

doi:10.33642/ijbass.v7n6p2

Abstract

The paper aims to determine the practical applicability of the indicator of economic freedom in economic policy. The problem areas that arose in connection with the given aim, had a significant influence on the determination of the goal of the work. We were interested in, whether a small degree of economic freedom is the cause of slow economic growth and development, or if the causal link going in the opposite direction? Is the relationship between these elements and economic freedom the same always and everywhere? To answer these questions, we perform a series of analyzes on the data panel of the V4 countries for the period 2000-2019. Based on the obtained results, we identify those factors whose development is strongly related to the development of economic freedom. The results suggest that economic freedom is strongly correlated with public debt, exports, and the level of unemployment, is reflected in the values of these elements and at the same time is significantly affected by these elements. The strength and nature of their relationship with economic freedom vary across the group. Therefore, they cannot be considered as indicators of the state of economic freedom. Contrary to some published findings, little evidence has been obtained that economic freedom significantly affects economic growth.

Highlights

The lack of economic growth in many countries is one freedom affect the development of the system directly or of the most important economic problems in historical and indirectly through the determinants of economic growth?
Why are some countries experiencing Third, economic freedom is often measured by broad high levels of economic growth while others are not, and what composite indices containing a large number of variables
The purpose of this paper is to examine the direction a sign of the country's maturity and an accompanying and strength of the interaction between economic freedom, phenomenon in the development of the social system. economic growth, and some of its determinants, and to try to Alternatively, they allow for a two-way relationship, tending to identify factors that are generally positively correlated with look for a positive link between the degree of economic economic freedom

Summary

INTRODUCTION

The lack of economic growth in many countries is one freedom affect the development of the system directly or of the most important economic problems in historical and indirectly through the determinants of economic growth?. These are complex issues is why it is difficult to say exactly what creates economic that have attracted widespread attention [6], [2], [26] and many freedom. With such an intention, it is difficult to others) since the time of Aristotle.

THE CONCEPT OF ECONOMIC FREEDOM

RESULTS

CONCLUSION