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The Index of Economic Freedom and Economic Growth in Transition Economies

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  • John Broussard

    (Rutgers University, New Yersey , USA)

  • Peter Koveos

    (Syracuse University, New York, USA)

  • Allan Young

    (Syracuse University, New York, USA)

Abstract

In this article authors first look at the relationship between market-based economic institutions and economic growth for transition economies. Though prior studies have found that those transition economies with a greater development of their financial infrastructure and other market-based conditions in the period prior to the transition era as well as during the transition period appear to achieve a greater growth in their GDP. However, some conflicting evidence remains if we look at the extensiveness and effectiveness of market-based economic institutions as these terms are defined by the European Bank for Reconstruction and Development. Accordingly, in this article, the authors study the relationship between GDP and the Index of Economic Freedom (IEF) as defined by the Heritage Foundation.

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Bibliographic Info

Article provided by Faculty of Economics and Business, University of Zagreb in its journal Zagreb International Review of Economics and Business.

Volume (Year): 5 (2002)
Issue (Month): Special Conference Issue (December)
Pages: 21-36

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Handle: RePEc:zag:zirebs:v:5:y:2002:i:sci:p:21-36

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Keywords: institutions; growth; financial infrastructure; index of economic freedom;

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