An Application on The Effect of Government Efficiency on Economic Growth: Evidence from BRICS-T Countries

Authors : Rabia Tuğba Eğmir

Pages : 63-72

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Publication Date : 2024-06-30

Article Type : Research Paper

Abstract :All processes related to the provision of public services, policy formulation and implementation of these services fall within the scope of government effectiveness. Government effectiveness therefore promotes economic growth through the adoption of fair and transparent policies, improvement of the investment climate and effective enforcement of economic regulations. This creates a confidence in the economy, new business opportunities and ultimately an increase in the overall welfare of the society. As a result, assessing the impact of government effectiveness on economic growth is crucial. The goal of this study is to see how government efficiency affects economic growth in the BRICS-T countries, which are large rising economies. For this purpose, balanced panel data analysis was performed by creating four different models for the relevant countries in line with the data obtained for the period 2002-2021. As a result, it is estimated that the increase in government efficiency affects economic growth in the direction of increase for each model. The effects of fixed capital formation, employment and foreign direct investment variables on economic growth are estimated to be positive in parallel with the expectations.
Keywords : Kamusal Etkinlik, Ekonomik Büyüme, Panel Veri Analizi