Economic Freedom And Endogenous Economic Growth

Year 2021, Volume 8, Issue 2, 265 - 296, 30.07.2021

Cumhur TAŞ Veysel ULUSOY

https://doi.org/10.30626/tesamakademi.958750

Abstract

The relation between economic freedoms and economic performance is very crucial to determine economic growth and to the development policies of a country. Economic development and growth are the ultimate goal for all developed and emerging economies. Economic developed countries have been aiming to sustain their current situation, while developing countries apply policies that will provide economic growth and development. Convergence hypothesis which is the one of the main inference of Solow growth model states that, in a close economy, real income difference across countries tends to decrease because of the diminishing rate of return of capital. The concept of "economic freedoms" is one of the driving elements of economic growth and development. This study tests empirically economical freedom foster macroeconomic growth in an endogenous growth model. Panel data is used in covering 159 countries for the period of 1995-2014 via nonlinear least square methods. Findings suggest that there is significant relation between economical freedom and per capita growth. JEL Classification: E2, O43, O47, D02, E10

Keywords

Institutions and the Macroeconomy, Institutions and Growth, Empirical Studies of Economic Growth, Economic Freedom, Convergence

Ekonomik Özgürlük ve İçsel Ekonomik Büyüme

Abstract

Ekonomik özgürlükler ile ekonomik performans arasındaki ilişki, bir ülkenin ekonomik büyüme ve kalkınma politikalarının belirlenmesinde çok önemlidir. Ekonomik kalkınma ve büyüme, tüm gelişmiş ve yükselen ekonomiler için nihai hedeftir. Ekonomik olarak gelişmiş ülkeler mevcut durumlarını sürdürmeyi hedeflerken, gelişmekte olan ülkeler ise ekonomik büyüme ve kalkınmayı sağlayacak politikalar uygulamaktadır. Solow büyüme modelinin temel çıkarımlarından biri olan yakınsama hipotezi, kapalı bir ekonomide ülkeler arasındaki reel gelir farkının, azalan sermaye getiri oranı nedeniyle azalma eğiliminde olduğunu belirtmektedir. "Ekonomik özgürlükler" kavramı, büyüme ve kalkınmanın itici unsurlarından biridir. Bu çalışma, içsel bir büyüme modelinde ampirik olarak ekonomik özgürlüğün makroekonomik büyümeyi desteklediğini test etmektedir. Panel veri doğrusal olmayan en küçük kareler yönteminde gauss newton algoritması (iteratif simülasyon) kullanılarak 1995-2014 dönemi için 159 ülke verisi analiz edilmiştir. Bulgular, ekonomik özgürlük ile kişi başına büyüme arasında anlamlı bir ilişki olduğunu göstermektedir. JEL Sınıflaması: E2, O43, O47, D02, E10

Keywords

Kurumlar ve Makroekonomi, Kurumlar ve Büyüme, Ekonomik Büyümenin Ampirik Çalışmaları, Ekonomik Özgürlük, Yakınsama

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