- Table A1.9 Heritage Foundation / Wall Street Journal: Index of Economic Freedom

- 1 Trade: * What is the average tariff rate? * Are there any significant non-tariff barriers? * Is there corruption in the customs service?

- 2 Taxation(*) * What is the top income tax rate? What tax rate applies to the average income level? What is the top corporate tax rate?

- * What other taxes exist?

- 3 Government Intervention * What is the govemment consumption level as a percentage of the economy? * To what extent does the govemment own businesses and industries? How much of the economy's output is produced by the government?

- 4 Monetary Policy * What is the average inflation rate from 1985 to 1994? * What is the average inflation rate for 1995?

- 5 Capital Flows and Foreian Investment * Does the country have an investment code? * Does it provide 100 percent foreign ownership? Are these restrictions on which industries and companies foraign investors can invest in?

- * Are these restrictions and performance requirements on foreign companies? * Can foreigners own land? Are foreign and domestic companies treated the same under the law?

- * Does the country allow foreign companies to repatriate their earnings? * Can foreign companies receive local financing?

- 6 Banking * Does the govemment own any banks?

- Can foreign banks open branches and subsidiaries?

- Does the govemment influence the allocation of credit?

- Are banks free to operate without govemment reaulations such as deposit insurance?

- Are banks free to offer all types of financial services like buying and seUling real estate, securities and insurance policies?

- 7 Wage and Price Controls * Does the aovemment have a minimum waqe?

- Are businesses free to set their own prices without govemment influence? Does the govemment set prices for any products? If _so._ to what extent?

- * Does the govemment provide subsidies to businesses to affect prices?

- 8 Property Rights * Is the legal system free from govemment influence * Is there a commercial code defining contracts? * Does the country allow foreign arbitration of contract disputes? Can property be expropriated by the government? Is there corrupton within the iudiciary? Are there maior delays in receiving judicial decisions? Is private property legally granted and protected?

- 9 Regulabtion * Is a license reouired to operate a business? * Is it easy to obtain a business license? Is there corruption within the bureaucracy?

- * Does the govemment force businesses to subscribe to strict established work weeks, paid vacabons, matemity leaves, etc.? * Does the govemment force businesses to subscribe to stnict environmental, consumer safety, andconsumer safety, and worker health regulabons? * Does the existence of regulations pose a burden on business? To what extent?

- 10 Black Market Is there a significant level of a country's labor supplied on the black market? Is there a sionificant level of a country's transportation supplied on the black market? Is there a significant level of a country's agricultural production supplied on the black market? Is there a significant level of a country's manufacturing supplied on the black market?

- Does the govemment force businesses to subscribe to strict established work weeks, paid vacabons, matemity leaves, etc.?

- Does the govemment force businesses to subscribe to stnict environmental, consumer safety, andconsumer safety, and worker health regulabons?

- Is there a significant level of a country's services supplied on the black market?

- Is there a significant level of piracy of intellectual property in the black market? Is there a significant level of smuggling in the country?

- (-) The taxation index is itself the average of two sub-indices, one on income taxes and another one on corporate taxes.

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