Monetary freedom and economic growth in New European Union Member States

Figures & data

Table 1. Descriptive statistics.

Variable	Mean	Std. Dev.
Growth	3.15	4.23
MF	71.16	16.89
PRF	53.66	15.30
CF	44.98	10.48
FF	72.02	11.80
GSF	46.59	15.33
BF	70.66	9.800
TF	78.49	9.967
IF	67.39	12.47
FINF	64.78	14.21

Source: Own calculations.

Table 2. Correlation matrix for explanatory variables.

	PRF	CORF	FF	GSF	BF	MF	TF	IF	FINF
PRF	1.0000
CORF	0.6421	1.0000
FF	‒0.0973	‒0.0836	1.0000
GSF	‒0.2652	‒0.2335	0.4660	1.0000
BF	0.5157	0.4579	0.1989	0.0469	1.0000
MF	0.1940	0.2944	0.3437	‒0.1010	0.3429	1.0000
TF	0.1428	0.2149	0.4610	0.1920	0.3406	0.4729	1.0000
IF	0.6132	0.4455	0.2802	0.1254	0.4967	0.1802	0.4375	1.0000
FINF	0.5125	0.2524	0.3036	‒0.0293	0.3961	0.4572	0.2611	0.4477	1.0000

Source: Own calculations.

Table 3. Panel regression results.

Variables	Model 1 (1997‒2015)		Model 2 (1997‒2008)
	Coefficient	Prob.	Coefficient	Prob.
Const.	0.622		‒0.652
MF	0.046**	0.011	0.056***	0.000
CF	0.014**	0.022	0.038***	0.000
FF	0.018	0.143	0.008*	0.065
GSF	0.009	0.237	0.005*	0.089
BF	0.003*	0.055	0.007**	0.025
TF	0.017*	0.096	0.024*	0.059
IF	0.004*	0.096	0.015**	0.029
FINF	0.003	0.489	0.006*	0.075
R squared	0.39		0.68
F stat.	5.86	0.0000	8.22***	0.0000

^*** Statistically significant at the 1% level.

^** Statistically significant at the 5% level.

^* Statistically significant at the 10% level.

Source: Own calculations.

Table

Variable	Statistics (adjusted t)	p-value
Monetary freedom	−13.9013	0.0000
Property rights	−2.5209	0.0026
Freedom from corruption	−3.5719	0.0002
Fiscal freedom	−2.9191	0.0018
Government spending	−4.4463	0.0000
Business freedom	−2.1503	0.0250
Trade freedom	−4.9618	0.0000
Investment freedom	−1.9328	0.0457
Financial freedom	−1.5792	0.0571
Growth	−5.2101	0.0000