Ekonomik Özgürlük ve İçsel Ekonomik Büyüme

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