Ekonomik Özgürlüklerin Kalkınma Göstergelerine Etkisi: Panel Veri Analizi

Abstract

Economic freedom, as an indicator for institutional structure of countries, which is based on private property, rule of law, freedom of enterprise, free trade both on national and international level and competition is often considered to be an important factor on development process. In this study, the effect of both economic freedom and its components on development indicators such as health, education, income distribution and poverty is examined with panel data analysis for 1970 – 2000 period by separating countries as “high”, “upper-middle”, “lower-middle” and “low” income. Results indicate that even if it differs for income groups, the effect of economic freedom on health and education indicators is positive, while it is negative on income distribution and poverty. Besides, some of economic freedom components are found insignificant and some of the significant components suggest different results than the general index.