Economic Freedom of the World
economic-freedom-of-the-world-2016
economic-freedom-of-the-world-2016
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142 • <strong>Economic</strong> <strong>Freedom</strong> <strong>of</strong> <strong>the</strong> <strong>World</strong>: 2016 Annual Report<br />
Panama<br />
1980 1990 2000 2005 2010 2013 2014<br />
Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank)<br />
Summary Ratings (Rank) 6.09 (28) 6.83 (27) 7.56 (24) 7.59 (26) 7.21 (56) 7.37 (38) 7.47 (37)<br />
Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data)<br />
Area 1. Size <strong>of</strong> Government 4.82 5.57 7.81 8.30 6.82 7.02 7.50<br />
A. Government consumption 3.48 (28.18) 4.66 (24.15) 5.26 (22.10) 6.65 (17.40) 6.71 (17.20) 7.01 (16.16) 6.96 (16.35)<br />
B. Transfers and subsidies 8.80 (4.90) 8.12 (7.40) 8.48 (6.06) 8.56 (5.80) 8.56 (5.80) 8.56 (5.80) 8.56 (5.80)<br />
C. Government enterprises and investment 4.00 (39.90) 7.00 (22.10) 10.00 (11.86) 10.00 (14.46) 6.00 (26.87) 6.00 (25.94) 8.00 (17.67)<br />
D. Top marginal tax rate 3.00 2.50 7.50 8.00 6.00 6.50 6.50<br />
(i) Top marginal income tax rate 3.00 (56) 3.00 (56) 8.00 (31) 9.00 (30) 8.00 (27) 9.00 (25) 9.00 (25)<br />
(ii) Top marginal income and payroll tax rate 2.00 (64) 7.00 (38) 7.00 (36) 4.00 (43) 4.00 (42) 4.00 (42)<br />
Area 2. Legal System and Property Rights 3.19 3.75 5.69 5.24 5.06 5.42 5.47<br />
A. Judicial independence 2.40 1.85 2.85 2.75<br />
B. Impartial courts 5.35 3.10 4.11 4.19 3.74<br />
C. Protection <strong>of</strong> property rights 4.07 6.71 6.25 5.84 6.09<br />
D. Military interference in rule <strong>of</strong> law and politics 8.33 8.33 8.33 8.33 8.33<br />
E. Integrity <strong>of</strong> <strong>the</strong> legal system 5.00 5.00 5.00 5.00 5.00<br />
F. Legal enforcement <strong>of</strong> contracts 2.26 2.26 2.99 2.99<br />
G. Regulatory costs <strong>of</strong> <strong>the</strong> sale <strong>of</strong> real property 8.38 7.65 8.79 8.79<br />
H. Reliability <strong>of</strong> police 5.92 5.64 5.88 5.88<br />
I. Business costs <strong>of</strong> crime 5.10 4.48 4.89 5.62<br />
Area 3. Sound Money 6.78 9.79 9.58 9.55 9.13 9.03 9.24<br />
A. Money growth 8.23 (8.85) 9.75 (-1.23) 9.32 (3.39) 9.05 (4.76) 8.29 (8.56) 9.35 (-3.25) 9.85 (0.76)<br />
B. Standard deviation <strong>of</strong> inflation 5.62 (10.96) 9.54 (1.16) 9.28 (1.80) 9.80 (0.49) 8.92 (2.70) 7.59 (6.04) 7.66 (5.86)<br />
C. Inflation: most recent year 3.26 (33.69) 9.89 (0.57) 9.70 (1.50) 9.35 (3.26) 9.30 (3.49) 9.19 (4.03) 9.47 (2.64)<br />
D. <strong>Freedom</strong> to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00<br />
Area 4. <strong>Freedom</strong> to Trade Internationally 8.64 7.80 7.89 8.10 8.29 8.50 8.51<br />
A. Tariffs 7.93 5.40 7.49 7.95 7.88 7.85 7.89<br />
(i) Revenue from trade taxes (% <strong>of</strong> trade sector) 7.93 (3.10) 8.80 (1.80) 7.33 (4.00) 8.94 (1.59) 8.94 (1.59) 8.94 (1.59) 8.94 (1.59)<br />
(ii) Mean tariff rate 2.00 (40.00) 7.33 (4.00) 8.52 (7.40) 8.56 (7.20) 8.62 (6.90) 8.64 (6.80)<br />
(iii) Standard deviation <strong>of</strong> tariff rates 7.04 (7.40) 6.38 (9.05) 6.14 (9.66) 6.00 (10.01) 6.08 (9.79)<br />
B. Regulatory trade barriers 4.95 6.97 7.58 7.32 7.24<br />
(i) Non-tariff trade barriers 4.95 5.09 6.31 5.88 5.59<br />
(ii) Compliance cost <strong>of</strong> importing and exporting 8.85 8.85 8.76 8.90<br />
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00<br />
D. Controls <strong>of</strong> <strong>the</strong> movement <strong>of</strong> capital and people 8.00 8.00 9.12 7.48 7.69 8.84 8.92<br />
(i) Foreign ownership/investment restrictions 8.24 7.13 7.76 7.38 7.63<br />
(ii) Capital controls 8.00 8.00 10.00 10.00 10.00 10.00 10.00<br />
(iii) <strong>Freedom</strong> <strong>of</strong> foreigners to visit 5.30 5.31 9.14 9.14<br />
Area 5. Regulation 6.99 7.25 6.86 6.77 6.77 6.89 6.64<br />
A. Credit Market regulations 8.47 9.33 9.21 9.33 9.18 8.78 8.53<br />
(i) Ownership <strong>of</strong> banks 8.00 8.00 8.00 8.00 8.00 8.00 8.00<br />
(ii) Private sector credit 8.95 10.00 9.64 10.00 9.54 8.33 7.59<br />
(iii) Interest rate controls (negative real interest rates) 10.00 10.00 10.00 10.00 10.00 10.00<br />
B. Labor Market regulations 5.94 5.16 5.10 5.47 5.10<br />
(i) Hiring regulations and minimum wage 3.76 1.10 2.23 2.23 2.23<br />
(ii) Hiring and firing regulations 4.15 3.37 3.56 4.53 3.55<br />
(iii) Centralized collective bargaining 5.85 6.59 6.67 5.94 6.69<br />
(iv) Hours regulations 4.00 4.00 6.00 4.00<br />
(v) Mandated cost <strong>of</strong> worker dismissal 5.92 4.13 4.13 4.13<br />
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00<br />
C. Business regulations 5.42 5.80 6.04 6.43 6.28<br />
(i) Administrative requirements 6.93 3.07 4.05 4.97 4.70<br />
(ii) Bureaucracy costs 3.90 4.69 4.85 4.85 4.85<br />
(iii) Starting a business 5.53 9.17 9.64 9.74 9.74<br />
(iv) Extra payments/bribes/favoritism 5.30 5.76 4.22 4.39 3.73<br />
(v) Licensing restrictions 8.39 8.90 9.27 9.32<br />
(vi) Cost <strong>of</strong> tax compliance 3.72 4.60 5.33 5.33<br />
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