Derives an indicator for economic freedom based on personal choice, protection of private property, and freedom of exchange. Considers levels and trends in economic freedom, and their correlation with economic growth in 103 countries.
The World Survey of Economic Freedom re-ports on eighty-two nations in the Americas, Western Europe, Central East Europe, and NIS (Newly Independent States), Asia, the Middle East, and Africa surveyed by Freedom House during 1995. For each nation, background information is provided, as well as answers to questions about freedom to hold property, to earn a living, to operate a business, to invest one's earnings, to trade internationally, to participate in a market economy, and freedom from unreasonable government interference in the economy. By focusing attention on nations in which economic freedom is denied, and in which individuals are not free to buy, sell, and trade in a market economy, this Freedom House survey advances the cause of democracy.
The Economic Freedom of the World (EFW) index was first produced by Gwartney, Block, and Lawson (Economic Freedom of the World: 1975-1995; 1996) and has been updated annually since. During this period, the EFW index has been cited in hundreds of academic articles. Here, we provide an accounting and description of this literature. Of 402 articles citing the EFW index, 198 used the index as an independent variable in an empirical study. Over two-thirds of these studies found economic freedom to correspond to a “good” outcome such as faster growth, better living standards, more happiness, etc. Less than 4% of the sample found economic freedom to be associated with a “bad” outcome such as increased income inequality. The balance of evidence is overwhelming that economic freedom corresponds with a wide variety of positive outcomes with almost no negative tradeoffs.
The World Survey of Economic Freedom re-ports on eighty-two nations in the Americas, Western Europe, Central East Europe, and NIS (Newly Independent States), Asia, the Middle East, and Africa surveyed by Freedom House during 1995. For each nation, background information is provided, as well as answers to questions about freedom to hold property, to earn a living, to operate a business, to invest one's earnings, to trade internationally, to participate in a market economy, and freedom from unreasonable government interference in the economy. By focusing attention on nations in which economic freedom is denied, and in which individuals are not free to buy, sell, and trade in a market economy, this Freedom House survey advances the cause of democracy.
The index published in Economic freedom of the world measures the degree to which the policies and institutions of countries are supportive of economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of privately owned property.
Freedom in the World, the Freedom House flagship survey whose findings have been published annually since 1972, is the standard-setting comparative assessment of global political rights and civil liberties. The survey ratings and narrative reports on 195 countries and fourteen territories are used by policymakers, the media, international corporations, civic activists, and human rights defenders to monitor trends in democracy and track improvements and setbacks in freedom worldwide. The Freedom in the World political rights and civil liberties ratings are determined through a multi-layered process of research and evaluation by a team of regional analysts and eminent scholars. The analysts used a broad range of sources of information, including foreign and domestic news reports, academic studies, nongovernmental organizations, think tanks, individual professional contacts, and visits to the region, in conducting their research. The methodology of the survey is derived in large measure from the Universal Declaration of Human Rights, and these standards are applied to all countries and territories, irrespective of geographical location, ethnic or religious composition, or level of economic development.