The Effect of Institutional Factors on Economic Growth: An Empirical Study

Abstract

In this study, 55 countries that also includes Turkey's impact on the institutional structure of economic growth for the sample was examined by the panel data analysis using annual data for the period 2002-2017. In this study, the economic growth variable is the independent variable which is taken as representative of dependent variable and institutional factors, the rule of law, corruption control, political stability, civil rights, political rights, human development index and education index. According to the analysis results of the study, there is a statistically significant and positive relationship between the rule of law, education, corruption control, political stability, civil rights and human development index and economic growth, while there is a statistically significant relationship between economic freedom and political rights and economic growth among independent variables relationship was not found. The fact that six of the eight independent variables used in the study have a statistically significant and positive relationship between economic growth shows that the institutional structure positively affects economic growth.

In this study, 55 countries that also includes Turkey's impact on the institutional structure of economic growth for the sample was examined by the panel data analysis using annual data for the period 2002-2017. In this study, the economic growth variable is the independent variable which is taken as representative of dependent variable and institutional factors, the rule of law, corruption control, political stability, civil rights, political rights, human development index and education index. According to the analysis results of the study, there is a statistically significant and positive relationship between the rule of law, education, corruption control, political stability, civil rights and human development index and economic growth, while there is a statistically significant relationship between economic freedom and political rights and economic growth among independent variables relationship was not found. The fact that six of the eight independent variables used in the study have a statistically significant and positive relationship between economic growth shows that the institutional structure positively affects economic growth.