Economic Freedom Index |
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Indicators |
Sub-indicators |
Sub-factorcs |
1. RULE OF LAW |
1.1 Property Rights |
Physical property rights |
Intellectual property rights |
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Strength of investor protection |
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Risk of expropriation |
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Quality of land administration |
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1.2 Judicial Effectiveness |
Judicial independence |
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Quality of the judicial process |
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Favoritism in decisions of government officials |
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1.3 Government Integrity |
Public trust in politicians |
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Irregular payments and bribes |
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Transparency of government policymaking |
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Absence of corruption |
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Perceptions of corruption |
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Governmental and civil service transparency |
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2. GOVERNMENT SIZE |
2.1 Tax Burden |
The top marginal tax rate on individual income |
The top marginal tax rate on corporate income |
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The total tax burden as a percentage of GDP |
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2.2 Government Spending |
Captures the burden imposed by government expenditures |
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2.3 Fiscal Health |
Average deficits as a percentage of GDP for the most recent three years (80 percent of score) |
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Debt as a percentage of GDP (20 percent of score). |
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3. REGULATORY EFFICIENCY |
3.1 Business Freedom |
Starting a business—procedures (number); |
Starting a business—time (days) |
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Starting a business—cost (% of income per capita) |
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Starting a business—minimum capital (% of income per capita) |
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Obtaining a license—procedures (number) |
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Obtaining a license—time (days) |
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Obtaining a license—cost (% of income per capita) |
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Closing a business—time (years) |
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Closing a business—cost (% of estate) |
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Closing a business—recovery rate (cents on the dollar) |
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Getting electricity—procedures (number) |
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Getting electricity—time (days) |
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Getting electricity—cost (% of income per capita) |
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3.2 Labor Freedom |
Ratio of minimum wage to the average value added per worker |
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Hindrance to hiring additional workers |
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Rigidity of hours |
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Difficulty of firing redundant employees |
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Legally mandated notice period |
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Mandatory severance pay |
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Labor force participation rate |
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3.3 Monetary Freedom |
The weighted average inflation rate for the most recent three years |
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Price controls |
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4. OPEN MARKETS |
4.1 Trade Freedom |
The trade-weighted average tariff rate |
Nontariff barriers (NTBs) |
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4.2 Investment Freedom |
National treatment of foreign investment |
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Foreign investment code |
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Restrictions on land ownership |
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Sectoral investment restrictions |
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Expropriation of investments without fair compensation |
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Foreign exchange controls |
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Capital controls |
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4.3 Financial Freedom |
The extent of government regulation of financial services |
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The degree of state intervention in banks and other financial firms through direct and indirect ownership |
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Government influence on the allocation of credit |
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The extent of financial and capital market development |
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Openness to foreign competition |