RELATION BETWEEN ECONOMIC FREEDOM AND CORPORATIONS' OUTPUT: CASE OF THE CZECH AND SLOVAK REPUBLIC

Cultural norms, formal and informal norms, rules or institutions plays very difficult role in activities of every individual. This paper examined relation between economic freedom and corporations' output. The aim of the paper is to evaluate the relation for the Czech and Slovak Republic during the period. Degree of economic freedom represents two international well known organizations the Fraser Institute and Heritage Foundation. Both of them have dealt with economic freedom for a long time. Corporation's output is represented by the share of sectoral gross value added on gross value added of total economy. Pearson's correlation coefficient was applied to examine the relation between those variables. No significant relation between economic freedom and corporations' output was found for the Czech and Slovak countries.