Across 160 countries, Governance score and Light regulation (Fraser) rise and fall together at r = +0.58 (on a scale from −1 to +1, where 0 means no link). Comparing only countries with similar income (GDP per person) shrinks it to +0.40 (q = 0.023, allowing for the many pairs tested). Much of the first figure is that both measures rise with national income, but a moderate positive link remains.
Comparing countries across the middle half of light regulation (Fraser), 5.83 to 6.97 points, governance score is better by 0.61 typical gaps at the top of that range than the bottom. Comparing only countries with similar national income, the gap is 0.44 typical gaps.
Link before adjusting (r)+0.584p = 4.9e-16 · 160 countries
After adjusting for national income+0.403p = 1.4e-7 · likely range [+0.26, +0.53]
p, allowing for regions0.000standard error 0.047 · 7 regions
Check for luck (q)0.023across 17,292 pairs
How to read these.r runs from −1 (one goes up as the other goes down) to +1 (they rise together), and 0 means no link. Adjusting for national income means comparing countries with the same GDP per person, so differences in wealth can’t explain the link. Income is used in percentage terms, since an extra $1,000 means more to a poor country than to a rich one. p is how likely a link this strong would be if there were really none. Below 0.05 means it is unlikely to be chance. Very small values are written in short form: 1.1e-32 means a decimal point followed by 31 zeros and then 11, so very close to zero. The likely range is where the true figure probably lies, and a range that crosses zero means the link could easily be chance. Countries in the same region tend to resemble each other, so the third figure allows for that, which gives a fairer p. The standard error is the typical size of the error in r. Finally, testing this many pairs means some will look strong by luck alone. A q below 0.05 means this link is unlikely to be one of those.
Governance score · typical gaps (standard deviations)link with income +0.53 · moderate
Light regulation (Fraser) · rating (0-10)link with income +0.64 · high
“Link with income” is how closely each measure tracks GDP per person across countries, from −1 to +1.
Every country as a dot
best-fit line line after adjusting
Four ways to measure the link
Method
r
p
Countries
Standard (Pearson), not adjusted
+0.584
4.9e-16
160
By rank (Spearman), not adjusted
+0.603
3.4e-17
160
Standard (Pearson), adjusted for national income
+0.403
1.4e-7
160
By rank (Spearman), adjusted for national income
+0.394
2.8e-7
160
The rank version uses only each country’s place in line, from lowest to highest, so a few extreme countries count for less. The adjusted and unadjusted versions use the same 160 countries: those that report both measures and GDP per person. So the gap between them comes from the adjustment, not from a change in which countries are counted. Drop in the size of r after adjusting: +0.182 (a minus sign means it grew).
How solid is it?
Leaving out one country at a time, r ranges from +0.380 (without RUS) to +0.435 (without HKG). The bar above shows that range on a scale from −1 to +1, with the solid line at the full result. The single country that moves r most: HKG (+0.032).
Within each region
Countries are not separate, unrelated cases, and neighbors share a lot. A link that holds inside each region is far more believable than one that shows up only when comparing regions.
n
r
East Asia & Pacific
19
+0.60
Europe & Central Asia
46
+0.53
Latin America & Caribbean
24
+0.13
Middle East, North Africa, Afghanistan & Pakistan
20
+0.31
Sub-Saharan Africa
44
+0.34
By income third
If the link shows up only in the richest third of countries, it is a feature of rich countries, not a general pattern.
n
r
Poorest third
54
+0.37
Middle third
53
+0.52
Richest third
53
+0.35
By largest religious group
Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.
n
r
Christians
96
+0.40
Muslims
43
+0.44
By last European coloniser
Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.
n
r
France
25
+0.51
Never a European colony
18
+0.51
Spain
18
-0.02
United Kingdom
48
+0.48
By official ideology
Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.
n
r
Nationalist
23
+0.30
No strong official ideology
111
+0.45
By party system
Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.
n
r
A few parties banned
26
+0.35
No parties banned
116
+0.30
Without outliers (countries far outside the middle half of countries on either measure, by more than one and a half times the width of that middle half): r = +0.372 after dropping 2 countries.
Two series, one country
Both measures over the years for one country you pick. The two charts are stacked so they share only the years along the bottom.
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Over time, within countries
Everything above compares countries with each other at one moment. This section compares each country only with itself over 0years. So a link here can’t come from anything about a country that stays the same, such as its history, geography, institutions or culture.
Not enough history inside each country to look at this over time. That needs countries measured for several years in a row, and at least one of these measures is measured too rarely.
The data
typical gaps (standard deviations)
rating (0-10)
Years
Denmark DNK
1.47
7.77
2025, 2024
Switzerland CHE
1.47
7.6
2025, 2024
Norway NOR
1.43
6.96
2025, 2024
Sweden SWE
1.42
7.23
2025, 2024
Ireland IRL
1.41
8.18
2025, 2024
Belgium BEL
1.41
7.14
2025, 2024
Estonia EST
1.41
7.75
2025, 2024
Uruguay URY
1.39
6.59
2025, 2024
Finland FIN
1.38
7.54
2025, 2024
Australia AUS
1.38
8.18
2025, 2024
Luxembourg LUX
1.38
7.63
2025, 2024
Germany DEU
1.36
7.49
2025, 2024
Canada CAN
1.36
7.66
2025, 2024
Costa Rica CRI
1.34
7
2025, 2024
Austria AUT
1.33
7.05
2025, 2024
fh; un_sdg; vdem; wdi; wgi Gwartney, J., Lawson, R., Murphy, R. and others, Economic Freedom of the World: 2026 Annual Report, Fraser Institute. Data from the EFW panel dataset (efotw-2026-master-index-data-for-researchers-iso.xlsx).
PlaceStats · via PlaceStats · Derived work; each member keeps its own licence · updated recomputed with the panel
The average of 19 measures from 5 publishers. Each measure is first put on a common scale: 0 is the average country in an average year, and 1 is a typical gap between countries (a standard deviation). Each is turned so that higher is better. Measures are averaged within each publisher first, so a publisher with many measures does not count for more. Members: Civil liberties (FH), Political rights (FH), Pre-trial detainee share, Civil society participation, Political corruption, Electoral democracy, Freedom of association, Freedom of expression, Free and fair elections, Liberal democracy, Participatory democracy, Political civil liberties, Birth registration, Control of corruption, Government effectiveness, Political stability, Rule of law, Regulatory quality, Voice and accountability.
Economic freedom, area 5, regulation (Fraser Institute)
Fraser Institute · No licence stated; used with citation · updated annual
Scores higher the lighter the rules on credit, labour and business: for example, how easy it is to start a business, hire and fire, or get a loan from a private bank, from 0 to 10. No "better" direction is set: how much to regulate is a political question.
How this was computed
Data used: most recent value in 2010-2025; values come from 2011–2025. To adjust for income, each measure is first predicted from GDP per person (in percentage terms, on a log scale) with a straight-line fit. Only what is left over is then compared. This is called a partial correlation. The line is drawn the standard way (ordinary least squares), which picks the line that comes closest to all the countries at once. The error margins allow for countries in the same region resembling each other, using 7 World Bank regions. The q-value corrects for testing all 17,292 pairs at once, using the Benjamini–Hochberg method. Underlying data last updated V-Dem v16; V-Party v2. How the country data works · explore Governance score and Light regulation (Fraser)
This page shows that two measures go together. It does not show that Governance score changes Light regulation (Fraser), or the reverse. These figures also describe countries, not individual people. See the ecological fallacy.
More links with Governance score or Light regulation (Fraser)