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

Authors : Muhammet Fatih Coşkun, Ali Şen

Pages : 26-35

Doi:10.30711/utead.1339652

View : 42 | Download : 56

Publication Date : 2023-12-31

Article Type : Research Paper

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