CAN THE DEVELOPMENT DIFFERENCES OF COUNTRIES BE EXPLAINED WITH A FREEDOM STRUCTURE?

Authors : Nalan Kangal, Ilhan Eroğlu

Pages : 626-644

Doi:10.53092/duiibfd.1330316

View : 58 | Download : 70

Publication Date : 2023-11-30

Article Type : Research Paper

Abstract :This study aims to test the relationship between the liberal structure of countries and the development of countries. GDP per capita and price stability were used as performance measures for this. For this purpose, two separate models were constructed for developed and developing countries. Model I analyses the effect of economic freedoms on GDP per capita and Model II analyses the impact of economic releases on the consumer price index. According to the analysis using panel data analysis for developed and developing country groups, the findings reveal that a libertarian structure positively affects economic growth and is a discriminator in the emergence of development differences in countries. In contrast, a libertarian design does not have a significant relationship with price stability. These findings provide evidence in support of the Monetarist view that inflation is always a monetary phenomenon. According to the results of this study, it is recommended that especially developing countries should implement prudent policies towards price stability in monetary and fiscal policy.
Keywords : Ekonomik Özgürlük, Ekonomik Büyüme, Fiyat İstikrarı, Panel Veri Analizi