Ever freer union? Economic freedom and the EU
3 August 2016
By performing an econometric analysis on the Fraser Institute’s “Economic Freedom of the World: Annual Report 2015,” it is found that EU membership is positively associated with economic freedom.
The model used controls for differences across countries as well as pan-European trends in economic freedom. The results are in general statistically significant.
The estimated effect of membership of the EU is positive for all areas of the index. The biggest estimated effect is on the area of Sound Money, given the introduction of the euro in countries which had previously been characterised by high inflation.
EPICENTER publications and contributions from our member think tanks are designed to promote the discussion of economic issues and the role of markets in solving economic and social problems. As with all EPICENTER publications, the views expressed here are those of the author and not EPICENTER or its member think tanks (which have no corporate view).
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