THE ROLE OF POLITICAL AND INSTITUTIONAL FACTORS ON ECONOMIC FREEDOM: EMPIRICAL EVIDENCE FROM PMG ARDL MODEL ESTIMATION

Bünyamin Fuat Yıldız

THE ROLE OF POLITICAL AND INSTITUTIONAL FACTORS ON ECONOMIC FREEDOM: EMPIRICAL EVIDENCE FROM PMG ARDL MODEL ESTIMATION

Abstract

This study focuses on investigating the political and institutional factors that impact economic freedom. The factors addressed for the study are those that have resulted in disputed outcomes in prior works— but have not been evaluated holistically. Using annual data collected from 2003 to 2017, a panel ARDL technique was performed for 17 nations to examine both the short-run and long-run impact of political and institutional factors. The results of the study suggest that government effectiveness and political stability have a favorable impact on economic freedom, but government size is not. Furthermore, the study shows that corruption has a detrimental impact on economic freedom. The most likely answer is that corruption is not grease for the economic system’s wheels. Surprisingly, the findings suggest that democracy has a negative influence on economic freedom. Hence, as a policy implication, there is a necessity to improve institutions’ effectiveness, reduce government size and provide political stability to construct economic freedom on economies.

Keywords

References

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Details

Primary Language

English

Subjects

Economics

Journal Section

Research Article

Authors

Bünyamin Fuat Yıldız This is me
0000-0001-7238-1541
United States

Publication Date

March 30, 2022

Submission Date

April 10, 2021

Acceptance Date

-

Published in Issue

Year 2022 Volume: 6 Number: 1

IZ

https://izlik.org/JA53WP34NB

Cite

RIS / Bibtex

APA

Yıldız, B. F. (2022). THE ROLE OF POLITICAL AND INSTITUTIONAL FACTORS ON ECONOMIC FREEDOM: EMPIRICAL EVIDENCE FROM PMG ARDL MODEL ESTIMATION. Journal of Research in Economics, 6(1), 83-94. https://izlik.org/JA53WP34NB