THE QUALITY OF BUSINESS LEGAL ENVIRONMENT AND ITS RELATION WITH BUSINESS FREEDOM
THE QUALITY OF BUSINESS LEGAL ENVIRONMENT AND ITS RELATION WITH BUSINESS FREEDOM

Summary/Abstract: The legal environment, understood as a set of factors, affects enterprises in a given country and plays a large role in the business environment. Research aims. The main objective of the conducted research is to verify the hypothesis about the significance of legal environment in relation to the freedom of business conducted and the GDP achieved in a given country. Methodology. The research objective achievement was based on the analysis of the Rule of Law Index, Economic Freedom Index and Business Freedom (being the EFI subfactor) as well as GDP values for 97 countries that were included in the Rule of Law and Economic Freedom classification in 2016. The comparative method and factor analysis were conducted. Key findings. The higher level of the rule of law is related to higher economic development and provides wider freedom in business for entrepreneurs. In the studied cases, the leading countries’ group which includes Singapore, Australia, New Zealand, Denmark, and Norway, achieved the highest levels of both indexes’ values – Rule of Law and Business Freedom in comparison to other countries in analysed population.

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