Economic freedom and growth: exploring statistical significance of the relationship in the balkan economies - Economicus

by, Prof. Dr. Selami Xhepa

Abstract

Enhancing economic freedom remains a key policy objective of the reforms that Balkan economies are engaged in, particularly after ending of the conflicts and the start of Stabilization and Association Process
. The assumption is that enhancing economic freedom will produce high economic growth and improve prospects for higher standards of living for citizens. Therefore, the question of determining the relationship between economic freedom and economic growth has attracted attention of a number of researchers and a number of working papers have tried to explore on the issue. In this paper I try to investigate this relationship between economic freedom, decomposed in his ten dimensions, and economic growth, welfare effects and business development through the capital formation index
.