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Abstract: This paper examines the long run relationship between economic freedoms and income inequality in G-7[1] countries overthe2000 – 2015period. The World Economic Freedom Index (EFW) that created by the Fraser Institute is one of the methods of measuring economic freedoms in a country. The EFW consists of five sub-indices: size of the government, legal system and property rights, sound money, freedom to trade internationaly and regulations. According to the results of this study, EFW increases income inequality in G-7 countries. However, all of the areas of economic freedom do not affect income inequality in the same direction. While freedoms in government size and legal system areas has increased the income inequality freedoms in free trade to internationally, sound money and regulation areas reduce income inequality. [1] United States, Canada, United Kingdoom, Germany, France, Japan, Italy
Abstract: This paper examines the long-run relationship between economic freedoms and income inequality in the G-7 countries overthe2000 - 2015period. The World Economic Freedom Index (EFW) that created by the Fraser Institute is one of the methods of measuring economic freedoms in a country. The EFW consists of five sub-indices: size of the government, legal system and property rights, sound money, freedom to trade international and regulations. According to the results of this study, EFW increases income inequality in the G-7 countries. However, all of the areas of economic freedom do not affect income inequality in the same direction. While freedoms in government you and legal system areas has increased the income inequality; freedoms in free trade to internationally, sound money and regulation areas reduce income inequality. [1] United States, Canada, United Kingdoom, Germany, France, Japan, Italy
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