The Identification of Disruptions in the Slovak Economy Expressed by Index of Economic Freedom
The Identification of Disruptions in the Slovak Economy Expressed by Index of Economic Freedom

Summary/Abstract: Apart from focusing on economic growth, it is equally important to focus on the quality of institutional environment. Over the last two decades, The Slovak Republic was influenced by constant changes of the setting of its institutional framework. According to New Institutional Economic Theory, the country's economy achieves higher efficiency when functioning in the environment that has a better setup of institutions that subsequently generate lower transaction costs. In our paper, we focused on the level of transaction costs, expressed through qualitative index of Economic Freedom of the Fraser Institute, and linkage between this Index and Economic performance for time period 2000-2015. We concluded that there is a direct correlation between the quality of the institutional environment and economic performance of the Slovak Republic. We identified the corruption and law enforcement as disruptions of Slovak economy.

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