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The nexus between economic freedom and growth: Evidence from CEE countries in transition

Author

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  • Gurgul, Henryk
  • Lach, Łukasz

Abstract

This study sought to examine the causal links between economic freedom and economic growth of new EU members in transition in the period 2000-2009. The empirical results suggest significant causality running from monetary and fiscal freedom, trade openness, regulation of credit, labour, and business, legal structure and security of property rights, and access to sound money to growth, especially in less and moderately developed CEE transition countries. Moreover, we found evidence that economic freedom was one of the factors stimulating the convergence of these economies towards rich EU members. The evidence of causality in the opposite direction was much weaker.

Suggested Citation

  • Gurgul, Henryk & Lach, Łukasz, 2011. "The nexus between economic freedom and growth: Evidence from CEE countries in transition," MPRA Paper 37434, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:37434
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    File URL: https://mpra.ub.uni-muenchen.de/37434/1/MPRA_paper_37434.pdf
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    References listed on IDEAS

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    Cited by:

    1. Pyastolov Sergey & Shitenkova Elena, 2012. "Power – property core of economic development: the cases of Russia and South Korea," Journal of Economic Regulation Journal of Economic Regulation (Вопросы регулирования экономики), CyberLeninka;Общество с ограниченной ответственностью «Гуманитарные перспективы», vol. 3(4), pages 93-108.

    More about this item

    Keywords

    economic growth; economic freedom; CEE transition economies;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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