Economic Freedom of the World
economic-freedom-of-the-world-2016
economic-freedom-of-the-world-2016
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150 • <strong>Economic</strong> <strong>Freedom</strong> <strong>of</strong> <strong>the</strong> <strong>World</strong>: 2016 Annual Report<br />
Romania<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) 5.02 (75) 5.27 (110) 7.22 (51) 7.29 (47) 7.54 (24) 7.66 (22)<br />
Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data)<br />
Area 1. Size <strong>of</strong> Government 7.85 5.94 5.02 7.86 6.33 6.77 6.78<br />
A. Government consumption 9.41 (8.01) 6.82 (16.82) 7.50 (14.48) 8.44 (11.31) 5.87 (20.03) 6.28 (18.64) 6.34 (18.43)<br />
B. Transfers and subsidies 6.29 (14.10) 5.07 (18.60) 6.09 (14.84) 7.01 (11.49) 5.96 (15.33) 6.78 (12.32) 6.78 (12.32)<br />
C. Government enterprises and investment 4.00 (60.70) 10.00 (10.56) 7.00 (23.84) 7.00 (21.16) 7.00 (21.20)<br />
D. Top marginal tax rate 2.50 6.00 6.50 7.00 7.00<br />
(i) Top marginal income tax rate 5.00 (40) 10.00 (16) 10.00 (16) 10.00 (16) 10.00 (16)<br />
(ii) Top marginal income and payroll tax rate 0.00 (68) 2.00 (54) 3.00 (48) 4.00 (45) 4.00 (45)<br />
Area 2. Legal System and Property Rights 6.28 6.16 5.47 5.72 5.74 5.97<br />
A. Judicial independence 3.14 3.52 4.10 4.93<br />
B. Impartial courts 5.52 3.45 3.04 3.57 3.84<br />
C. Protection <strong>of</strong> property rights 4.10 5.12 4.89 4.93 4.81<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 6.67 6.67 6.67 5.80 5.83<br />
F. Legal enforcement <strong>of</strong> contracts 5.21 4.85 4.85 4.85<br />
G. Regulatory costs <strong>of</strong> <strong>the</strong> sale <strong>of</strong> real property 7.97 9.11 9.15 9.18<br />
H. Reliability <strong>of</strong> police 4.44 4.54 5.36 5.36<br />
I. Business costs <strong>of</strong> crime 4.87 6.56 5.59 6.58<br />
Area 3. Sound Money 6.61 7.18 2.71 8.30 9.10 9.52 9.43<br />
A. Money growth 7.76 (11.20) 8.57 (7.13) 9.98 (-0.12) 8.92 (-5.39) 8.65 (6.77) 9.60 (2.02) 8.93 (5.34)<br />
B. Standard deviation <strong>of</strong> inflation 8.78 (3.05) 7.87 (5.32) 0.00 (44.43) 6.07 (9.82) 8.98 (2.56) 9.28 (1.79) 9.02 (2.46)<br />
C. Inflation: most recent year 9.88 (0.59) 7.26 (13.72) 0.87 (45.67) 8.20 (8.99) 8.78 (6.09) 9.20 (3.99) 9.79 (1.07)<br />
D. <strong>Freedom</strong> to own foreign currency bank accounts 0.00 5.00 0.00 10.00 10.00 10.00 10.00<br />
Area 4. <strong>Freedom</strong> to Trade Internationally 3.24 6.70 7.79 7.99 7.84 8.36<br />
A. Tariffs 9.73 6.76 7.75 8.34 8.25 8.43<br />
(i) Revenue from trade taxes (% <strong>of</strong> trade sector) 9.73 (0.40) 8.95 (1.58) 9.59 (0.62) 9.63 (0.55) 9.64 (0.54) 9.81 (0.28)<br />
(ii) Mean tariff rate 8.95 (1.58) 8.68 (6.60) 8.98 (5.10) 8.90 (5.50) 8.94 (5.30)<br />
(iii) Standard deviation <strong>of</strong> tariff rates 4.36 (14.10) 4.98 (12.56) 6.41 (8.98) 6.22 (9.46) 6.54 (8.64)<br />
B. Regulatory trade barriers 5.48 6.89 7.06 6.60 8.14<br />
(i) Non-tariff trade barriers 5.48 5.43 5.78 4.93 6.33<br />
(ii) Compliance cost <strong>of</strong> importing and exporting 8.35 8.35 8.26 9.96<br />
C. Black-market exchange rates 0.00 0.00 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 0.00 0.00 4.54 6.52 6.55 6.53 6.86<br />
(i) Foreign ownership/investment restrictions 7.55 6.23 5.54 5.26 6.25<br />
(ii) Capital controls 0.00 0.00 1.54 6.92 7.69 8.46 8.46<br />
(iii) <strong>Freedom</strong> <strong>of</strong> foreigners to visit 6.40 6.42 5.87 5.87<br />
Area 5. Regulation 2.64 2.47 5.78 6.68 7.31 7.84 7.74<br />
A. Credit Market regulations 0.00 0.00 5.34 7.77 9.00 9.62 9.72<br />
(i) Ownership <strong>of</strong> banks 0.00 0.00 0.00 5.00 10.00 10.00 10.00<br />
(ii) Private sector credit 0.00 0.00 6.02 9.32 7.01 8.87 9.17<br />
(iii) Interest rate controls (negative real interest rates) 0.00 10.00 9.00 10.00 10.00 10.00<br />
B. Labor Market regulations 6.28 5.63 6.87 7.47 7.25<br />
(i) Hiring regulations and minimum wage 4.66 3.30 3.33 5.00 3.90<br />
(ii) Hiring and firing regulations 8.80 4.15 4.29 5.09 5.20<br />
(iii) Centralized collective bargaining 8.67 7.87 6.37 6.73 6.39<br />
(iv) Hours regulations 6.00 8.00 8.00 8.00<br />
(v) Mandated cost <strong>of</strong> worker dismissal 9.44 9.25 10.00 10.00<br />
(vi) Conscription 1.00 0.00 3.00 3.00 10.00 10.00 10.00<br />
C. Business regulations 5.73 6.64 6.06 6.42 6.24<br />
(i) Administrative requirements 6.63 3.50 3.08 3.68 3.54<br />
(ii) Bureaucracy costs 7.50 7.04 5.67 5.67 5.67<br />
(iii) Starting a business 3.60 9.60 9.52 9.72 9.72<br />
(iv) Extra payments/bribes/favoritism 5.18 5.18 4.49 4.49 3.60<br />
(v) Licensing restrictions 6.72 6.11 6.76 6.72<br />
(vi) Cost <strong>of</strong> tax compliance 7.84 7.51 8.22 8.22<br />
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