Free to Enterprise : Economic Freedom and Entrepreneurship In Romania

Authors: 
┼×imandan, Radu Ioan
Publication date: 
16/06/2015
JEL codes: 
H11 - Structure, Scope, and Performance of Government, L26 - Entrepreneurship.
Abstract: 
In this article we analyze the relation between the economic freedom and the level of entrepreneurship in Romania. The widely used hypothesis that a free economic environment tend to generate high levels of entrepreneurship is discussed for the case of Romania. The evolution of a few fundamental features of the institutional environment for doing business in recent years is investigated, along with some measures of the level of entrepreneurship. A strong direct relation between economic freedom and entrepreneurship level was found for a large number of countries and geographic areas around the world. The available data does not allow us to make a quantitative analysis for Romania, but some suspected reasons for a direct relation between economic freedom and entrepreneurship level are presented. Future research directions are also suggested.
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