Abstract
In this study, we examine the effects of economic freedom and foreign direct investment (FDI) on economic growth. We utilized a panel of 83 developed and developing countries over the period 1970 to 2009. We observed that including the interaction term of economic freedom and FDI makes the estimation results more powerful. In other words, our findings show that economic freedom does have the power to affect economic performance through FDI.
References
- Alfaro, L., Chanda, A., Kalemli-Ozcan, S., Sayek, S., (2010). Does foreign direct investment promote growth? Exploring the role of financial markets on linkages. Journal of Development Economics 61, 242– 256. Azman-Saini, W.N.W., Baharumshah, A.Z., and Law, S.H., (2010). Foreign direct investment, economic freedom and economic growth: International evidence. Economic Modelling 27, 1079-1089. Barro, R. J., (2001). Human capital and growth. The American Economic Review 91 (2), 12- 17. Barro, R. J., and Lee, J.W., (2000). International Data on Educational Attainment Updates and Implications. NBER Working Paper Series, No. 7911. Barro, R. J., and Sala-i Martin, X., (1995). Economic growth. New York: McGraw-Hill. Bengoa, M., and Sanchez-Robles, B., (2003). Foreign direct investment, economic freedom and growth: New evidence from Latin America. European Journal of Political Economy 19(3), 529-545. Berggren, N., (2003). The Benefits of Economic Freedom. The Independent Review 8 (2), 193- 211. Braumoeller, B.F., (2004). Hypothesis Testing and Multiplicative Interaction Terms. International Organization 58, 807-820. Crespo, N., and Fontoura, M., (2007). Determinant Factors of FDI Spillovers: What Do We Really Know? World Development 35, 410– 425. Doucouliagos, C., and Ulubasoglu, M., (2006) Economic freedom and economic growth: what difference does specification make? European Journal of Political Economy 22, 61-81. Gwartney, J.D., Lawson, R., (2007). Economic Freedom of the World: 2007 Annual Report. Vancouver BC: The Fraser Institute. Hsiao, C., (2003). Analysis of Panel Data. Cambridge: Cambridge University Press. Javorcik, B.S., and Spatareanu, M., (2005). Do foreign investors care about labor market regulations? Review World Economics 141, 375–403. Kapuria-Foreman V., (2007). Economic Freedom and Foreign Direct Investment in Developing Countries. The Journal of Developing Areas 41 (1), 143-154. Nunenkamp, P., and Spatz, J., (2003). Intellectual property rights and foreign direct investment: A disaggregated analysis. Review of World Economics 140, 393--414. Quazi R.M., (2007). Economic Freedom and Foreign Direct Investment in East Asia. Journal of the Asia Pacific Economy 12 (3), 329-344. UNCTAD, (2011). World Investment Report. Non-Equity Modes of International Production and Development. Wooldridge, J., (2005). Introductory Econometrics: A modern Approach. Thomson South- Western.
Abstract
Bu çalışmanın amacı doğrudan yabancı yatırımlar (DYY) ve ekonomik özgürlüğün, ekonomik büyüme üzerine etkisini incelemektir. Analiz, Fraser Enstitüsü ve Heritage Vakfı tarafından oluşturulan birbirinden farklı iki önemli ekonomik özgürlük endeksine dayanmaktadır. Çalışmada, doğrudan yabancı yatırımların ekonomik büyüme üzerindeki doğrudan etkisinin yanısıra, DYY ile ekonomik özgürlük etkileşimi üzerinden dolaylı etkisi de analiz edilmiştir.
1970-2009 yılları arasında toplam seksen üç gelişmiş ve gelişmekte olan ülkenin dahil edildiği panel veri seti kullanılarak, En Küçük Kareler Yöntemi ve Sabit Etkiler Modeli gibi farklı panel veri analiz tekniklerinin kullanıldığı çalışmamız, DYY ile ekonomik büyüme arasında pozitif bir ilişkinin varlığını ortaya koymaktadır. Bunun yanında, ekonomik özgürlüğün, DYY üzerinden ekonomik büyümeyi etkilediği, fakat bu etkinin büyüklüğü Fraser Enstitüsü ve Heritage Vakfı tarafından sağlanan endeksler için farklı olduğu bulunmuştur.
References
- Alfaro, L., Chanda, A., Kalemli-Ozcan, S., Sayek, S., (2010). Does foreign direct investment promote growth? Exploring the role of financial markets on linkages. Journal of Development Economics 61, 242– 256. Azman-Saini, W.N.W., Baharumshah, A.Z., and Law, S.H., (2010). Foreign direct investment, economic freedom and economic growth: International evidence. Economic Modelling 27, 1079-1089. Barro, R. J., (2001). Human capital and growth. The American Economic Review 91 (2), 12- 17. Barro, R. J., and Lee, J.W., (2000). International Data on Educational Attainment Updates and Implications. NBER Working Paper Series, No. 7911. Barro, R. J., and Sala-i Martin, X., (1995). Economic growth. New York: McGraw-Hill. Bengoa, M., and Sanchez-Robles, B., (2003). Foreign direct investment, economic freedom and growth: New evidence from Latin America. European Journal of Political Economy 19(3), 529-545. Berggren, N., (2003). The Benefits of Economic Freedom. The Independent Review 8 (2), 193- 211. Braumoeller, B.F., (2004). Hypothesis Testing and Multiplicative Interaction Terms. International Organization 58, 807-820. Crespo, N., and Fontoura, M., (2007). Determinant Factors of FDI Spillovers: What Do We Really Know? World Development 35, 410– 425. Doucouliagos, C., and Ulubasoglu, M., (2006) Economic freedom and economic growth: what difference does specification make? European Journal of Political Economy 22, 61-81. Gwartney, J.D., Lawson, R., (2007). Economic Freedom of the World: 2007 Annual Report. Vancouver BC: The Fraser Institute. Hsiao, C., (2003). Analysis of Panel Data. Cambridge: Cambridge University Press. Javorcik, B.S., and Spatareanu, M., (2005). Do foreign investors care about labor market regulations? Review World Economics 141, 375–403. Kapuria-Foreman V., (2007). Economic Freedom and Foreign Direct Investment in Developing Countries. The Journal of Developing Areas 41 (1), 143-154. Nunenkamp, P., and Spatz, J., (2003). Intellectual property rights and foreign direct investment: A disaggregated analysis. Review of World Economics 140, 393--414. Quazi R.M., (2007). Economic Freedom and Foreign Direct Investment in East Asia. Journal of the Asia Pacific Economy 12 (3), 329-344. UNCTAD, (2011). World Investment Report. Non-Equity Modes of International Production and Development. Wooldridge, J., (2005). Introductory Econometrics: A modern Approach. Thomson South- Western.
Details
| Primary Language | English |
|---|---|
| Subjects | Economics |
| Journal Section | Makaleler |
| Authors | |
| Publication Date | January 22, 2019 |
| Submission Date | July 17, 2018 |
| Published in Issue | Year 2019 Volume: 6 Issue: 1 |