Economic freedom in nations

Aspects of economic freedom as distinguished by Fraser Institute,  Freedom House and Heritage Foundation. Indexes of overall economic freedom

Aspects: Fraser Institute (noted with1 in variable codes)

Variable Measurement Era SPSS code N Source

Government size
(negative freedom)

 Government consumption 2000 GovConsumption1_2000 88

Gwartney & Lawson 2006
2005 GovConsumption1_2005 125
2006 GovConsumption1_2006 138
Transfers and subsidies 2000 GovTranfers1_2000 79
2005 GovTransfers1_2005 99
2006 GovTransfers1-2006 115
Government enterprises and investments 2000 GovEnterprises1_2000 88
2005 GovEnterprises1_2005 106
2006 GovEnterprises1_2006 115
Top marginal tax rate 2000 GovTaxRate1_2000 79
2005 GovTaxRate1_2005 99
2006 GovTaxRate1_2006 117
Index of 1) goverment consumption, 2) transfers and subsidies, 3) government enterprises and investments, 4) top marginal tax rate 2005 GovernmentSize1_2005 121
2006 GovernmentSize1_2006 138

Legal structures and security of property rights
(positive freedom)

 Index of: 1) judicial independence, 2) impartial courts, 3) protection of intellectual property, 4) no military interference, 5) integrety of legal system 2000 LegalSecurity1_2000 88
2001 LegalSecurity1_2001 88
2002 LegalSecurity1_2002 88
2006 LegalSecurity1_2006 117
Access to sound money
(positive freedom)		 Index of: 1) growth of money supply, 2) inflation and variability, 3) recent annual inflation, 4) freedom to own foreign currency. 2000 SafeMoney11_2000 88
2001 SafeMoney1_2001 88
2002 SafeMoney_2002 88
2006 SafeMoney_2006 138
Freedom to trade internationally
(positive)		 Index of; 1) taxes on international trade, 2) regulatory trade barriers, 3) size of trade sector, 4) official vs black marker exchange rate, 5) restrictions on capital markets 2000 FreeTrade1_2000 88
2001 FreeTrade1_2001 88
2002 FreeTrade1_2002 88
2006 FreeTrade1_2006 138
Regulation of credit, labour and business
(negative)		 Regulation of credit market 2000 MarketRegulationCredit1_2000 87
2006 MarkerRegulationCredit1_2006 140
Regulation of labour market 2000 MarketRegulationLabor1_2000 70
2006 MarketRegulationLabor1_2006 137
Regulation of business 2000 MarketRegulationBusiness1_2000 70
2006 MarketRegulationBusiness1_2006 137
Index of: 1) regulation of credit market, 2) regulation of labour market, 3) regulation of business 2000 MarketRegulationIndex1_2000 89
2001 MarketRegulationIndex1_2001 88
2002 MarketRegulationIndex1_2002 88
2006 MarketRegulationIndex1_2006 137
Regulation of labor market (items in index of MarketRegulationLabor1) Minimum Wage 2006 LaborMinimumWage1_2006 135
Hirimg and firing regulations 2006 LaborHireFire1_2006 114
Centralized collective bargening 2006 LaborContralBargain1_2006 119
Mandated cost of hiring 2006 LaborCostHiring1-2006 135
Mandated cost of worker dismissal 2006 LaborCostDismissal1_2006 135


Aspects: Freedom House (noted with3 in variable codes)

Freedom to own property

Criteria are: Is the right to property recognized by law? Is the right to intellectual property protected? Does the legal system give effect to the right to property? Are there restrictions on selling, exchanging or devising property? Can individuals structure their property holdings among themselves as they choose?
Scale 0-3

 1995-96 FreeProperty3_1995 69 Messick 1996 table 4
Freedom to earn a living Scale 0-3 1995-96 FreeEarnings3_1995 68
Freedom to operate a business Scale 0-3 1995-96 FreeBusiness3_1995 67
Freedom to invest one's earnings Scale 0-3 1995-96 FreeInvestment3_1995 64
Freedom to trade internationally Scale 0-2 1995-96 FreeTrade3_1995 68
Freedom to participate in a market economy Scale 0-2 1995-96 FreeMarket3_1995 68

Aspects: Heritage Foundation (noted with 2 in variable codes)

Variable Measurement Era SPSS code N Source
Free trade Index of: a) weighed average tax rate, b) non-tariff barriers, c) corruption in customs service
Rated: 1 (free) to 5 (unfree)		 1995 RestrictTrade2_1995 78 www.heritage.org
2000 RestrictTrade2_2000 103
2005 RestrictTrade2_2005 102
Index of: a) trade weighed average tariff, b) non-tarif barriers.
Rated 0 (unfree) to 100 (free) 		2006 FreeTrade2_2006 155
Fiscal freedom Index of: a) top marginal income tax rate, b) top marginal corporate tax rate, c) year-to-year change in goverbment expenditures as % GDP
Rated: 1 (free) to 5 (unfree)		 1995 FiscalBurden2_1995 78
2000 FiscalBurden2_2000 103
2005 FiscalBurden2_2005 102
Idem, rated 0 (unfree) to 100 (free) 2006 FiscalFreedom2_2006 155

Goverment intervention (size)

Index of: a) governmant consumption in % of economy, b) government ownership of business, c) share of government revenues from state-owned enterprises and property, d) economic output produced by goverment
Rated: 1 (free) to 5 (unfree)

2000 GoverbmentSize2_2000 103
2005 GovernmentSize2_2005 102
GovernmentExpenditures, including government consumption and transfers in % GDP 2006 GovIntervention2_2006 155
Monetary policy Weighed average inflation rate over the last 10 years
Rated: 1 (free) to 5 (unfree)		 1995 InflationRate2_1995 78
2000 InflationRate2_2000 103
2005 InflationRate2_2005 102
Index of a) weighted average inflation rate over the last 3 years, b) price controls 2006 MonetaryFreedom2_2006 156
Free investment Intex of: a) foreign investment code, b) restrictions to foreign ownership of business, c) restrictions on industries and companies open to foreign investors, d) restrictions and performance requirements on foreign companies, e) foreign ownership of land, f) equal treatment under the law for both foreign and domestic companies, g) restrictions on repatriation of earnings, h) restrictions on capital transactions, i) availability of local financing for foreign companies
Rated: 1 (free) to 5 (unfree)		 1995 RestrictForeignInvest2_1995
 78
2000 RestrictForeignInvest2_2000 103
2005 RestrictForeignInvest2_2005 102
Idem: rated 0 (unfree) to 100 (free) 2006 InvestmentFreedom2_2006 154
Moinetary freedom Index of: a) government ownership of financial institutions, b) restrictions on foreign banks, c) government influence over the allocation of credit, d) government regulations that inhibit financial activity, e) freedom to offer all types of financial services, securities and insurance policies
Rated: 1 (free) to 5 (unfree)		 1995 RestrictBanks2_1995 78
2000 RestrictBanks2_2000 103
2005 RestrictBanks2_2005 102
Idem, rated 0 (unfree) to 100 (free) 2006 FinancialFreedom2_2006 156
Labor freedom Index of: a) minimum wage laws, b) freedom to set prices, c) government price controls, d) extend to which government price controls are used, e) government subsidies to businesses that affect prices
Rated: 1 (free) to 5 (unfree) 		1995 ControlWagesPrices2_1995 78
2000 ControlWagesPrices2_2000 103
2005 ControlWagesPrices2_2005
 102
Idem: rated 0 (unfree) to 100 (free) 2006 LabourFreedom2-2006 156
Property rights Index of: a) freedom of government influence over the juridical system, b) commercial code defining contracts, c) sanctioning of foreign arbitration of contract disputes, d) government expropriation of property, e) corruption within the judiciary, f) delays in receiving juridical decisions and/or enforcement, g) legally protected and granted property
Rated: 1 (free) to 5 (unfree)		 1995 RestrictProperty2_1995
 78
2000 RestrictProperty2 103
2005 RestrictProperty2_2005 102
Idem, rated 0 (free) to 100 (unfree) 2006 PropertyRights2_2006 155
Free business Index of: a) licensing requirements to operate a business, b) ease of obtaining a business license, c) corruption within the bureaucracy, d) labor regulations such as established work weeks, paid vacations and parental leave, as well as selected labor regulations, f) environmental, consumer safety, and worker health regulations, g) regulations that impose a burden on business
Rated: 1 (free) to 5 (unfree)		 1995 RegulationBusiness2_1995
 77
2000 RegulationBusiness2_2000 103
2005 RegulationBusiness2_2005 102
Idem: Rated 0 (unfree) to 100 (free) 2006 BusinessFreedom2_2006 156
Informal market Index of: a) smugling, b) piracy of intellectual property in the informal market, c) agricultural production supplied by the informal market, d) manufacturing supplied by the informal market, e) services supplied on the informal market, f) transportation supplied on the informal market, g) labor supplied on the informal market
Rated: 1 (free) to 5 (unfree)		 1995 InformalMarket2_1995
 78
2000 InformalMarket2_2000 103
2005 InformalMarket2_2005 102

Indexes

Variable Measurement Era SPSS code N Source
Fraser index
(1)		 Index of 1) size of government (-), 2) property rights (+), 3) access to sound money (+), 4) freedom to trade internationally (+), 5) regulation of credit labour and business (-) 1990 FreeEconIndex1_1990 80

Gwartney & Lawson 2006)
1995 FreeEconIndex1_1995 89
2000 FreeEconIndex1_2000 89
2001 FreeEconIndex1_2001 88
2002 FreeEconIndex1_2002 88
2005 FreeEconIndex1_2005 137
2006 FreeEconIndex1_2006 138
Freedom House Index
(3)		 Index of freedom to: 1) own property, 2) earn a living, 3)operate a business, 4)invest earnings, 5) trade internationally, 6) operate a market 1995-96 FreeEconIndex3_1995 69 Messick 1996 table 4
Heritage Index
(2)		 Index of : 1) limitations to trade, 2) fiscal burden, 3) government intervention, 4) monitary policy, 5) limitation to foreign investment, 6) limitations to banking, 7) Control of wages and prices, 8) limitations to property rights, 9) regulation, 10) informal market 1995 FreeEconIndex2_1995 78 www.heritage.org
1999 FreeEconIndex2_9199 105
2000 FreeEconIndex2_2000 103
2002 FreeEconIndex2_2002 103
2005 FreeEconIndex2_2005 102
2007 FreeEconIndex2_2007 155
2010 FreeEconIndex2_2010 173  
Index of : 1) free trade, 2) fiscal freedom, 3) freedom of government intervention, 4) monetary freedom, 5) free investment, 6) free banking, 7) free wages, 8) property rights, 9) free business, 10) control of corruption 2006 FreeEconIndex2B-2006 155  
Related variables:
Regulatory quality (topic governance)		 Related topics:
Corruption
Governance
Government expenditure
Instittutional quality
 

Related themes:
Freedom
Politics
Wealth

States of Nations is an inventory of country characteristics. It is part of the World Database of Happiness

Keywords added: Cross national, market regulation, liberalism, capitalism, free trade