HOW DOES ECONOMIC FREEDOM AND GOVERNANCE QUALITY AFFECT ECONOMIC GROWTH: A PANEL DATA ANALYSIS FOR 26 EUROPEAN COUNTRIES

Year 2023, Volume: 7 Issue: 2, 26 - 35, 31.12.2023

Muhammet Fatih Coşkun , Ali Şen

https://doi.org/10.30711/utead.1339652

Abstract

The purpose of this study is to examine the impact of economic freedom and governance quality on economic growth. Sustainable economic growth and the factors determining prosperity have long been of interest to researchers. Therefore, analyzing the impact of economic freedoms and governance quality on economic growth is crucial. This is particularly important in a region like the European Union, which has the world's largest economic network. Twenty six of the European Union countries were chosen for this purpose. The level of economic freedom by Fraser Institute, and the level of governance by Worldbank were used to analyze this relationship. The primary hypothesis of the study is that institutional factors will stimulate economic expansion. In order to examine this hypothesis, tests for cross-section dependency, heterogeneity, unit root, cointegration, and causality were conducted. Consequently, it has been determined that these factors contribute to economic growth throughout the period. It has been discovered that there are differences across nations, and the causes for these distinctions are discussed in the discussion section.

Keywords

Economic freedom, Governance quality, Gross domestic product per capita, European Union, Panel Data Analysis

EKONOMİK ÖZGÜRLÜK VE YÖNETİŞİM KALİTESİ EKONOMİK BÜYÜMEYİ NASIL ETKİLER: 26 AVRUPA ÜLKESİ İÇİN PANEL VERİ ANALİZİ

Abstract

Bu çalışmanın amacı, ekonomik özgürlük ve yönetişim kalitesinin ekonomik büyüme üzerindeki etkisini incelemektir. Sürdürülebilir ekonomik büyüme ve refahı belirleyen faktörler uzun zamandır araştırmacıların ilgisini çekmektedir. Bu nedenle, ekonomik özgürlüklerin ve yönetişim kalitesinin ekonomik büyüme üzerindeki etkisinin analiz edilmesi büyük önem taşımaktadır. Bu, Avrupa Birliği gibi dünyanın en büyük ekonomik ağına sahip bir bölgede özellikle önemlidir. Bu amaçla Avrupa Birliği ülkelerinden yirmi altısı seçilmiştir. Bu ilişkiyi analiz etmek için Fraser Enstitüsü'nün ekonomik özgürlük düzeyi ve Dünya Bankası'nın yönetişim düzeyi kullanılmıştır. Çalışmanın temel hipotezi, kurumsal faktörlerin ekonomik genişlemeyi teşvik edeceğidir. Bu hipotezi incelemek için yatay kesit bağımlılığı, heterojenlik, birim kök, eşbütünleşme ve nedensellik testleri yapılmıştır. Sonuç olarak, bu faktörlerin dönem boyunca ekonomik büyümeye katkıda bulunduğu tespit edilmiştir. Ülkeler arasında farklılıklar olduğu tespit edilmiş olup, bu farklılıkların nedenleri tartışma bölümünde ele alınmıştır.

Keywords

ekonomik özgürlük, yönetişim kalitesi, kişi başına gayri safi yurtiçi hasıla, avrupa birliği, panel veri analizi

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