THE RELATIONSHIP BETWEEN INSTITUTIONAL QUALITY AND INFLATION WITHIN THE FRAMEWORK OF VOICE AND ACCOUNTABILITY

Year 2024, Volume: 1 Issue: 1, 1 - 13, 26.12.2024

Ömer Faruk Biçen

Abstract

Monetary policy instruments are also employed in the battle against inflation since monetary factors are typically cited as the primary cause of inflation. The issue of inflation has started to be examined in terms of institutional quality measures, aside from monetary components, in recent years. This research takes a fresh approach in examining the relationship between inflation and the institutional quality indicator known as the "voice and accountability" index. Data from 12 Eastern European and Central Asian nations between 2002 and 2022 were utilized in this context. A positive relationship between institutional quality and inflation was found for the whole group, according to the findings from the panel Dynamic Ordinary Least Squares Mean Group estimator. This demonstrates that the inflation issue has not been resolved by improvements in institutional quality. On the other hand, a similar situation is valid for Azerbaijan, Belarus, Bosnia-Herzegovina, North Macedonia and Ukraine. In Albania, Armenia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, and Turkey, however, there was a negative relationship between improvements in institutional quality and inflation. It can be claimed that these nations' inflation issues will be resolved in part by improvements in institutional quality.

Keywords

Inflation, Institutional Quality, Voice and Accountability, Panel Data Analysis

SÖZ HAKKI VE HESAP VEREBİLİRLİK ÇERÇEVESİNDE KURUMSAL KALİTE – ENFLASYON İLİŞKİSİ

Abstract

Enflasyon, genel olarak parasal unsurlar temelinde açıklandığından, enflasyonla mücadelede de para politikası araçlarına başvurulmaktadır. Son yıllarda enflasyon problemi, parasal unsurlar dışında kurumsal kalite göstergeleri açısından da ele alınmaya başlanmıştır. Bu çalışmada da farklı bir bakış açısı olarak kurumsal kalite göstergelerinden “söz hakkı ve hesap verebilirlik” endeksi ile enflasyon arasındaki ilişki incelenmektedir. Bu kapsamda, Doğu Avrupa ve Orta Asya’da yer alan 12 ülkenin 2002-2022 yılları arasındaki verilerinden hareket edilmiştir. Ortalama Grup Panel Dinamik En Küçük Kareler tahmincisi çerçevesinde elde edilen sonuçlara göre; tüm grup için kurumsal kalite ile enflasyon arasında pozitif bir ilişkiye ulaşılmıştır. Bu durum, kurumsal kalitedeki ilerlemelerin enflasyon sorunu için bir çözüm ortaya koyamadığını göstermektedir. Diğer taraftan benzer bir durum, Azerbaycan, Belarus, Bosna-Hersek, Kuzey Makedonya ve Ukrayna için de geçerlidir. Bununla birlikte; Arnavutluk, Ermenistan, Gürcistan, Kazakistan, Kırgızistan, Moldova ve Türkiye’de ise kurumsal kalite düzeyindeki gelişmeler ile enflasyon arasında negatif ilişki bulunmuştur. Bu ülkeler için enflasyon probleminin çözümünde kurumsal kalite düzeyindeki ilerlemelerin önemli olduğu söylenebilir.

Keywords

Enflasyon, Kurumsal Kalite, Söz Hakkı ve Hesap Verebilirlik, Panel Veri Analizi

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