To the list of articles26 september 2002
Economic Freedom and Economic Welfare (Postponed Reforms: Costs of the Missed Opportunities)
The paper analyzes an influence of the indicies of economic freedom on economic welfare in transition countries. The authors consider an influence of the indicies of economic freedom and the reform indicies on GDP growth and foreign direct investment, which is an important factor of economic growth. The paper shows that economic freedom, democratization, rule of law, and progress in economic reforms positively influence on economic growth and foreign direct investment. Correlation between the indicies of economic freedom, liberalization, democratization and foreign direct investment is stronger than with GDP growth. The authors have established that liberalization of foreign trade and currency, banking reform, development of stock market, and large scale privatization exert the most essential influence on foreign direct investment.