Analysis of The Relationship Between Economic Freedom and Economic Growth In Indonesia (J)

Dwi Wulandari

Fakulty of Economics

Universitas Negeri Malang


The purpose of this research is to find the relationship between economic freedom and economic growth in Indonesia from 2004-2014. Economic freedom represents the institutional reform in a country. The result indicates that   economic freedom leads to   economic growth. Market liberalization is a necessary institutional reforms for the country that is concerned in increasing economic growth. Economic freedom is a key component in the effort to improve the economic and social welfare. Moderate degree of freedom required in the political and economic areas to improve growth. Institutional framework of the community plays a role in long-term economic performance. Economic freedom will boost economic growth and market economic system is a very powerful engine of innovation that is the trigger of economic growth. Free market and the protection of property rights would increase economic growth.


Keywords: Economic freedom, economic growth, index of economic freedom, market economy, institutional reform

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