Economic Freedom (EF)

This variable refers to the ability to prosper through the free exercise of economic activity while letting others do the same. The principles of economic freedom generate long-lasting economic growth, opportunity and prosperity that should contribute to enhance the financial stability of the banking system.

Investment freedom index (IF): A variety of investment restrictions (burdensome bureaucracy, restrictions on land ownership, expropriation of investments without fair compensation, foreign exchange controls, capital control, security problems, a lack of basic investment infrastructure, etc.).

Property rights index (PR): The degree to which a country’s laws protect private property rights and the degree to which its government enforces those laws. and businesses to enforce contracts.

IF: Positive

PR: Positive