More recently, many economists have come to believe that marketfriendly
government policies are another important cause of economic growth.
Hans Pitlik opens his paper “The Path of Liberalization and Economic Growth”
by saying that numerous empirical studies have shown that pro-market
government policies have a positive effect on the economic growth of a given
country. His explanation for this is that pro-market policies increase the benefits
individuals receive for performing activities that are conducive to economic
growth (Piltik, p.57). This theory implies that entrepreneurship may be
significantly influenced by market-friendly government policies.