Does Economic Freedom Impact Economic Growth: Evidence from two Western Balkan Countries

Abstract

In this paper we will present the results of our survey on economic freedom, and its impact on economic growth in the Bosnia and Herzegovina and Republic Croatia. To measure economic freedom we will use The Index of Economic Freedom published by the Heritage Foundation in cooperation with the Wall Street Journal. Our basic assumption is  that increase of the economic freedom, will lead to the real GDP growth. We find that economic freedom have strong, but different impact on GDP growth for both countries