The index published in Economic Freedom of the World measures the degree to which countries' policies and institutions support economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to enter markets and compete, and security of the person and privately owned property. The EFW index now ranks 165 countries and territories. Data are available for more than 100 nations and territories back to 1950. This dataset makes it possible for scholars to analyze the impact of both cross-country differences in economic freedom and changes in that freedom across a time frame of three and a half decades.
For a consistent time series for a particular country and/or longitudinal data for a panel of countries, the Fraser Institute previously developed and reported a chain-linked version of the index. The EFW Panel Dataset is now entirely based on the chain-linking method, having the base year as 2020, and they will make the most recent year’s data the base year in the future.
Changes in a country’s scores backward
in time are based only on changes in components that were present in adjoining
years. It should be noted that the EFW Panel Dataset contains area and summary
ratings only for those years in which the country received a regular EFW index
rating.
Last updated by source: 2023-09-19
| Dataset type: | Time-Series |
| Dataset level: | Country |
(Gwartney et al.,
2022)
The index ranges from 0-10 where 0 corresponds to ``increasing tax rate on international trade'', ``slow import or export process'', ``small trade sectors relative to the population and geographic size'', ``exchange rate controls are present and a black-market exists'', and ``restrictions on the freedom of citizens to engage in capital market exchange with foreigners'' and 10 corresponds to ``no specific taxes on international trade'', ``swift import or export process'', ``large trade sectors relative to the population and geographic size'', ``no black-market exchange rate'', and ``no restrictions on the freedom of citizens to engage in capital market exchange with foreigners''. The index consists of the following indicators: Taxes on international trade, Regulatory trade barriers, Actual size of trade sector compared to expected size, Difference between official exchange rate and black market rate, and International capital market controls.
More about this variableThe index ranges from 0-10 where 0 corresponds to ``increasing tax rate on international trade'', ``slow import or export process'', ``small trade sectors relative to the population and geographic size'', ``exchange rate controls are present and a black-market exists'', and ``restrictions on the freedom of citizens to engage in capital market exchange with foreigners'' and 10 corresponds to ``no specific taxes on international trade'', ``swift import or export process'', ``large trade sectors relative to the population and geographic size'', ``no black-market exchange rate'', and ``no restrictions on the freedom of citizens to engage in capital market exchange with foreigners''. The index consists of the following indicators: Taxes on international trade, Regulatory trade barriers, Actual size of trade sector compared to expected size, Difference between official exchange rate and black market rate, and International capital market controls. Panel-data adjusted.
More about this variableThe index is founded upon objective components that reflect the presence (or absence) of economic freedom. The index comprises 21 components designed to identify the consistency of institutional arrangements and policies with economic freedom in five major areas: size of government (fi_sog), legal structure and security of property rights (fi_legprop), access to sound money (fi_sm), freedom to trade internationally (fi_ftradeint), regulation of credit, labor and business (fi_reg). The index ranges from 0-10 where 0 corresponds to ``less economic freedom'' and 10 to ``more economic freedom''. This is the version of the index published at the current year of measurement, without taking methodological changes over time into account.
More about this variableThe index is founded upon objective components that reflect the presence (or absence) of economic freedom. The index ranges from 0-10 where 0 corresponds to "less economic freedom'' and 10 to "more economic freedom''. The numbers found here are an extension of the panel data index using a smaller number of variables. These numbers are an improvement on what was published previously on economic freedom from 1950-1965, with more countries covered and using data sources. For more information, please see the chapter, "Economic Freedom of the World: 1950s and 1960s" found in the Economic Freedom of the World 2019 annual report.
More about this variableThe index is founded upon objective components that reflect the presence (or absence) of economic freedom. The index ranges from 0-10 where 0 corresponds to "less economic freedom'' and 10 to "more economic freedom''. Panel-data adjusted.
More about this variableThe index ranges from 0-10 where 0 corresponds to ``no judicial independence'', ``no trusted legal framework exists'', ``no protection of intellectual property'', ``military interference in rule of law'', and ``no integrity of the legal system'' and 10 corresponds to ``high judicial independence'', ``trusted legal framework exists'', ``protection of intellectual property'', ``no military interference in rule of law'', and ``integrity of the legal system''. The index consists of the following indicators: Judicial independence: The judiciary is independent and not subject to interference by the government or parties in dispute, Impartial courts: A trusted legal framework exists for private businesses to challenge the legality of government actions or regulations, Protection of intellectual property, Military interference in rule of law and the political process, Integrity of the legal system.
More about this variableThe index ranges from 0-10 where 0 corresponds to ``no judicial independence'', ``no trusted legal framework exists'', ``no protection of intellectual property'', ``military interference in rule of law'', and ``no integrity of the legal system'' and 10 corresponds to ``high judicial independence'', ``trusted legal framework exists'', ``protection of intellectual property'', ``no military interference in rule of law'', and ``integrity of the legal system''. The index consists of the following indicators: Judicial independence: The judiciary is independent and not subject to interference by the government or parties in dispute, Impartial courts: A trusted legal framework exists for private businesses to challenge the legality of government actions or regulations, Protection of intellectual property, Military interference in rule of law and the political process, Integrity of the legal system. Panel-data adjusted.
More about this variableThe index ranges from 0-10 where 0 corresponds to ``low percentage of deposits held in privately owned banks'', ``high foreign bank license denial rate'', ``private sector's share of credit is close to the base-year-minimum'', ``deposit and lending rates is fixed by the government and real rates is persistently negative'', ``high impact of minimum wage'', ``widespread use of price controls throughout various sectors of the economy'', and ``starting a new business is generally complicated'' and 10 corresponds to ``high percentage of deposits held in privately owned banks'', ``low foreign bank license denial rate'', ``private sector's share of credit is close to the base-year-maximum'', ``interest rates is determined primarily by market forces and the real rates is positive'', ``low impact of minimum wage'', ``no price controls or marketing boards'', and ``starting a new business is generally easy''. The index consists of the following indicators: Credit Market Regulations, Labor Market Regulations, Business Regulations.
More about this variableThe index ranges from 0-10 where 0 corresponds to ``low percentage of deposits held in privately owned banks'', ``high foreign bank license denial rate'', ``private sector's share of credit is close to the base-year-minimum'', ``deposit and lending rates is fixed by the government and real rates is persistently negative'', ``high impact of minimum wage'', ``widespread use of price controls throughout various sectors of the economy'', and ``starting a new business is generally complicated'' and 10 corresponds to ``high percentage of deposits held in privately owned banks'', ``low foreign bank license denial rate'', ``private sector's share of credit is close to the base-year-maximum'', ``interest rates is determined primarily by market forces and the real rates is positive'', ``low impact of minimum wage'', ``no price controls or marketing boards'', and ``starting a new business is generally easy''. The index consists of the following indicators: Credit Market Regulations, Labor Market Regulations, Business Regulations. Panel-data adjusted.
More about this variableThe index ranges from 0-10 where 0 corresponds to ``high annual money growth'', ``high variation in the annual rate of inflation'', ``high inflation rate'', and ``restricted foreign currency bank accounts'' and 10 corresponds to ``low annual money growth'', ``low or no variation in the annual rate of inflation'', ``low inflation rate'', and ``foreign currency bank accounts are permissible without restrictions''. The index consists of the following indicators: Average annual growth of the money supply in the last five years minus average annual growth of real GDP in the last ten years, Standard inflation variability in the last five years, Recent inflation rate, Freedom to own foreign currency bank accounts domestically and abroad.
More about this variableThe index ranges from 0-10 where 0 corresponds to ``high annual money growth'', ``high variation in the annual rate of inflation'', ``high inflation rate'', and ``restricted foreign currency bank accounts'' and 10 corresponds to ``low annual money growth'', ``low or no variation in the annual rate of inflation'', ``low inflation rate'', and ``foreign currency bank accounts are permissible without restrictions''. The index consists of the following indicators: Average annual growth of the money supply in the last five years minus average annual growth of real GDP in the last ten years, Standard inflation variability in the last five years, Recent inflation rate, Freedom to own foreign currency bank accounts domestically and abroad. Panel-data adjusted.
More about this variableThe index ranges from 0-10 where 0 corresponds to ``large general government consumption'', ``large transfer sector'', ``many government enterprises'', and ``high marginal tax rates and low income thresholds'', and 10 to ``small general government consumption'', ``small transfer sector'', ``few government enterprises'', and ``low marginal tax rates and high income thresholds''. The index consists of the following indicators: General government consumption spending as a percentage of total consumption, Transfers and subsidies as a percentage of GDP, Government enterprises and investment as a percentage of total investment, Top marginal tax rate (and income threshold to which it applies).
More about this variableThe index ranges from 0-10 where 0 corresponds to ``large general government consumption'', ``large transfer sector'', ``many government enterprises'', and ``high marginal tax rates and low income thresholds'', and 10 to ``small general government consumption'', ``small transfer sector'', ``few government enterprises'', and ``low marginal tax rates and high income thresholds''. The index consists of the following indicators: General government consumption spending as a percentage of total consumption, Transfers and subsidies as a percentage of GDP, Government enterprises and investment as a percentage of total investment, Top marginal tax rate (and income threshold to which it applies). Panel-data adjusted.
More about this variable