University of South Florida (USF) M3 Publishing


The idea that there are no restrictions in the economic attitude and behaviour of individuals and firms in the economy is expressed as economic freedoms. Today, the term of economic freedom still does not have a universal concept. However, it is known that there are free market conditions in countries that support economic freedom and the role of the state in the economy is kept at a minimum. There are many criteria for measuring the economic freedom of countries, and fiscal freedom and investment freedom are among the economic freedom criteria. The aim of the study is to analyse the causality relationship between fiscal freedom and investment freedom is conducted on E7 countries (Emerging 7; Brazil, China, India, Indonesia, Mexico, Russia, and Turkey) through a 25-year period between 1995 – 2019. The test results present that, there is a bidirectional causality between fiscal freedom and investment freedom in Indonesia. It is also inferred that there is a unidirectional causality from fiscal freedom to investment freedom in Brazil and Russia while the direction of the causality is reversed (from investment freedom to fiscal freedom) in Turkey. We may state that fiscal freedom is the cause of investment freedom in Brazil and Russia, in contrast, investment freedom cause to fiscal freedom in Turkey. Besides that, unlike the other E7 countries, fiscal freedom and investment freedom are the cause of each other in Indonesia.



Recommended Citation

Bolukbas, M. (2021). The nexus between fiscal freedom and investment freedom: The case of E7 countries. In C. Cobanoglu, & V. Della Corte (Eds.), Advances in global services and retail management (pp. 1-7). USF M3 Publishing. https://www.doi.org/10.5038/9781955833035

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