Economic freedom improves lives, says (another) study


A new meta-study by Serbian think tank Libek confirms that countries wishing to increase economic growth – and reap the many benefits that come with it – must focus on promoting the economic freedom of their people.

Libek reviewed 92 scholarly research studies that examined the relationship between economic freedom and economic growth. Eighty-six of them (93.5%) found a positive relationship.

Economic freedom encourages and empowers people to improve their lives and those of their families.

This is not surprising, given that economic freedom – the ability to direct one’s own life and make economic decisions for oneself – encourages and empowers people to improve their lives and those of their families.

The increased economic activity they produce shows up in measures of economic growth.

Yet this point cannot be repeated often enough because economic freedom is still suppressed in many parts of the world.

The authors of Libek’s meta-study believe their findings are particularly relevant to their native Serbia.

The increase in economic growth rates is very important for the Serbian economy. Serbia is the slowest growing economy in the Balkans: the average growth rate in the decade following the recession (2008-2016) was only 0.83% per year.

At the same time, the unweighted average growth rate of the other Balkan countries (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Montenegro and Romania) was almost double this figure, reaching 1.58%.

All but two of the other Balkan countries score higher than Serbia in The Heritage Foundation’s ranking Index of Economic Freedom 2018.

In fact, the Heritage Index shows that, on average, countries whose economic freedom scores have increased the most over periods of 5, 10 and 20 years also have the highest average annual growth in gross domestic product (GDP). per inhabitant.

The findings of the Serbian think tank are not surprising, and policy makers in Serbia and around the world should take them to heart.

Advancing economic freedom is essential to generating economic prosperity for the greatest number of people, in Serbia and everywhere else.

Reprinted from the Daily Signal.


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