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Economic freedom and bureaucracy: Romania versus Bulgaria

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  • Radu Ioan Simandan

Abstract

In this article, we critically analyze some recent attempts to assess the degree of economic freedom that countries around the world enjoy. The devised indices measure the consistency of a nation’s policies and institutions with economic freedom. Although there seems to be a consensus among economists that in those countries where economic freedom is maintained economic growth follows, this hypothesis has yet to be empirically proven. The problem of bureaucratic decision-making, as a mechanism that may interfere with the economic freedom is also discussed. We then study the case of two quasi-similar, neighboring countries embarked on European integration, namely Romania and Bulgaria.

Suggested Citation

  • Radu Ioan Simandan, 2011. "Economic freedom and bureaucracy: Romania versus Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 132-145.
    • Handle: RePEc:bas:econst:y:2011:i:4:p:132-145
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    References listed on IDEAS

    as
    1. Dawson, John W., 2003. "Causality in the freedom-growth relationship," European Journal of Political Economy, Elsevier, vol. 19(3), pages 479-495, September.
    2. William A. Niskanen, 1994. "Bureaucracy And Public Economics," Books, Edward Elgar Publishing, number 333.
    3. Manuel Vega-Gordillo & José L. à lvarez-Arce, 2003. "Economic Growth and Freedom: A Causality Study," Cato Journal, Cato Journal, Cato Institute, vol. 23(2), pages 199-215, Fall.
    4. Julio H. Cole, 2003. "The Contribution of Economic Freedom to World Economic Growth: 1980-99," Cato Journal, Cato Journal, Cato Institute, vol. 23(2), pages 189-198, Fall.
    5. World Bank, 2010. "World Development Report 2010," World Bank Publications - Books, The World Bank Group, number 4387.
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    More about this item

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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