Monika Daňová, Roman Vavrek, Vierka Ivanková
​University of Prešov in Prešov, Faculty of Management, Department of Economics and Economy, Konštantínova 16, 080 78  Prešov, Slovakia

2nd International Scientific Conference – EMAN 2018 – Economics and Management: How to Cope With Disrupted Times, Ljubljana – Slovenia, March 22, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Management Koper, Slovenia; Doba Business School – Maribor, Slovenia; Integrated Business Faculty –  Skopje, Macedonia; Faculty of Management – Zajecar, Serbia, ISBN 978-86-80194-11-0


Several published opinions consider economic growth as one of the conditions for economic freedom. At the same time, economic freedom is seen as a condition for the future growth of the economy. The Heritage Foundation, on the basis of the quantification of economic freedom, classifies countries as free – mostly free – moderately free – mostly unfree – repressed. It argues that in a group of countries classified as free, economic growth will be faster than in less-free economies. It can be assumed that the presented opinion is the result of empirical observations, according to which there is a positive relationship between the two characteristics.
Within the article, we analyse the possibility of generalizing the conclusion about the character and the closeness of the relation of the indicator of economic freedom with the indicators considered as a prerequisite for economic independence and the ability of self-development.
The first part examines the relationship between economic freedom and economic growth. We analyse the possibilities of using historical data on the economic freedom of the country to predict its economic growth. The objective is to obtain evidence to support the theory of the positive relationship between economic freedom and economic growth.
Subsequent verification of the nature and strength of the relationship between an economic freedom indicator and a set of factors of independence, development assumptions and resilience is based on the quantification of the degree of their dependence through correlation and regression analysis of economic freedom characteristics. The sources of the analysed data are Fraser Institute and The Heritage Foundation databanks, as well as Eurostat and World Bank data.
The results of the analysis reveal the differences in the closeness of the assessed economic variables with the indicator of economic freedom. The regression model concludes that economic freedom has no equally significant impact on economic growth in all groups of countries.

Key words

economic freedom, economic growth, factors of economic freedom, fiscal freedom, investment freedom, trade freedom


  1. Buzan, B. (2008) People, States and Fear: An Agenda For International Security. University of Essex: ECPR Press, pp. 318.
  2. Moran, T. H. (1990) International Economics and National Security. Foreign Affairs, 69, vol. 5, pp. 74-90.
  3. Kapstein, E. B.  (1991) Losing Control – National Security and the Global Economy: The National Interest. The perspective of the World Review. 1991. 3, vol.1, pp. 85-90.
  4. Lawson, R.A. (2006) On Testing the Connection between Economic Freedom and Growth. Econ Journal Watch, 3, vol. 3, pp. 398-406.
  5. Hall, J.C., Lawson, R.A. (2014) Economic freedom of the world: An accounting of the literature., [cit. 12.12.2017].
  6. Dolan (2017) The way economic freedom indexes measure regulation is deeply flawed., [cit. 4.12.2017].
  7. Miller, T., Kim, A. B. , Roberts, J. M. (2018) Index of economic freedom. The Heritage Foundation., [cit. 13.2.2018 ].
  8. Gwartney, Lawson, Hall (2017) Gwartney, J., Lawson, R., Hall, J. (2017). Economic Freedom of the World: 2017 Annual Report. Fraser Institute. [ cit. 13.2.2018 ].
  9. Rati R. (2014) Meranie ekonomickej slobody: porovnanie dvoch hlavných zdrojov, Applied Economics Letters, pp. 852-856, DOI: 10.1080 / 13504851.2014.894620.
  10. De Haan, J., Sturm J. (2000) On the relationship between economic freedom and economic growth, European Journal of Political Economy, 16, issue 2, p. 215-241,
  11. Easton, S. T., Walker, M. A. (1997) Income, Growth, and Economic Freedom. The American Economic Review. 87, vol. 2, pp. 328-332.
  12. Dawson, J.W. (1998), Institutions, Investment, and Growth: New Cross-Country and Panel Data Evidence. Econ. Inq., 36, vol.4, pp. 603–619.
  13. Heckelman, J.C. (2000) Economic Freedom and Economic Growth: A Short-Run Causal Investigation. Journal of applied Economic Sciences 5. vol..3, pp. 71–91.
  14. Weed, E., Kämpf, S. (2002) The impact of intelligence and institutional improvements on economic growth. Kyklos, 55, vol. 3, pp. 361–380.
  15. Vavrek, R. (2017). Weight of TOPSIS technique parameter and its impact on assessment of municipalities in Slovak republic. In: Scientific papers of the University of Pardubice. Vol. 24, Issue 39, pp. 236-246.
  16. Nedomlelová, I., Staňková, L., Vavrek, R. (2017). Impact of minimum wage in V4 countries. In: Journal of applied economic sciences. Vol. 12. Issue 2, pp. 332-341.
  17. Vavrek, R., Kotulič, R., Adamišin, P. (2015). Evaluation of municipalities management with the topsis technique emphasising on the impact of weights of established criteria. In: Lex Localis. Vol. 13, Issue 2, pp. 249-264.
  18. Hussain, M. E., Haque M. (2016) Impact of Economic Freedom on the Growth Rate: A Panel Data Analysis. Economies 2016, 4, 5; doi:10.3390/economies4020005
  19. Compton R. A., Giedeman D. C., Hoover G. A. (2011) Panel evidence on economic freedom and growth in the United States. European Journal of Political Economy Volume 27, Issue 3, pp. 423-435.
  20. Mura, L., Daňová, M., Vavrek, R., Dubravská, M. (2017) Economic freedom – classification of its level and impacz on the economic security. In: Ad alta: Journal of Interdisciplinary Research. Vol. 07, Issue 2, pp. 154-157.
  21. Asandului, L.; Iacobuta, A.; Cautisanu, C. 2016. Modelling Economic Growth Based on Economic Freedom and Social Progress. European Journal of Sustainable Development, 5, 3, 229-238, doi: 10.14207/ejsd.2016.v5n3p229
  22. Daňová, M., Vavrek, R., Kravčáková Vozárová, I. (2017) Analýza vzťahu ukazovateľa ekonomickej slobody s faktormi ekonomickej bezpečnosti. Auspicia, XIV (2). VŠERS České Budějovice. pp. 74-83. 

Share this

Association of Economists and Managers of the Balkans – UdEkoM Balkan
179 Ustanicka St, 11000 Belgrade, Serbia

Udekom Balkans is a dynamic non-governmental and non-profit organization, established in 2014 with a mission to foster the growth of scientific knowledge within the Balkan region and beyond. Our primary objectives include advancing the fields of management and economics, as well as providing educational resources to our members and the wider public.

Who We Are: Our members include esteemed university professors from various scientific disciplines, postgraduate students, and experts from ministries, public administrations, private and public enterprises, multinational corporations, associations, and similar organizations.

Building Bridges Together: Over the course of nine years since our establishment, the Association of Economists and Managers of the Balkans has established impactful partnerships with more than 1,000 diverse institutions across the Balkan region and worldwide.

EMAN conference publications are licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.