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Economic freedom and bureaucracy: Romania versus Bulgaria

  • Radu Ioan Simandan

In this article, we critically analyze some recent attempts to assess the degree of economic freedom that countries around the world enjoy. The devised indices measure the consistency of a nation’s policies and institutions with economic freedom. Although there seems to be a consensus among economists that in those countries where economic freedom is maintained economic growth follows, this hypothesis has yet to be empirically proven. The problem of bureaucratic decision-making, as a mechanism that may interfere with the economic freedom is also discussed. We then study the case of two quasi-similar, neighboring countries embarked on European integration, namely Romania and Bulgaria.

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Article provided by Bulgarian Academy of Sciences - Economic Research Institute in its journal Economic Studies.

Volume (Year): (2011)
Issue (Month): 4 ()
Pages: 132-145

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Handle: RePEc:bas:econst:y:2011:i:4:p:132-145
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  1. Manuel Vega-Gordillo & José L. Ãlvarez-Arce, 2003. "Economic Growth and Freedom: A Causality Study," Cato Journal, Cato Journal, Cato Institute, vol. 23(2), pages 199-215, Fall.
  2. John W. Dawson, 2001. "Causality in the Freedom-Growth Relationship," Working Papers 01-04, Department of Economics, Appalachian State University.
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