Social and Behavioral Sciences Commons^™

The Relationship Between Economic Freedom And Economic Growth: The Transistion Process In Vietnam And China, Hanh T. Vu

Mahurin Honors College Capstone Experience/Thesis Projects

The relationship between economic freedom and economic growth has always been frequently discussed in the economic literature. Economic freedom is often believed to enhance economic growth, which in turn creates more economic freedom. The first part of this paper studies the transition process in China and Vietnam from a planned economy to a free market economy. The transition process, which takes place over the period of more than two decades, allowing more economic freedom, and implementing some elements of a free market, has boosted the growth rate in both China and Vietnam, and increased considerably the standard of living of …