Free to Enterprise : Economic Freedom and Entrepreneurship In Romania

• Main Author: Radu Ioan Şimandan
• Format: Article
• Language: English
• Published: Editura ASE Bucuresti 2015-06-01
• Series: Romanian Economic Journal
• Subjects: economic freedom; entrepreneurship; business regulation; liberalization
• Online Access: http://www.rejournal.eu/article/free-enterprise-economic-freedom-and-entrepreneurship-romania

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.