The Influence of Economıc Freedom on Growth: an Assessment Within the Context of Globalization and Human Development
DOI:
https://doi.org/10.5281/zenodo.14919934Keywords:
Economic freedom, economic growth, globalization, human development, Toda-Yamamoto causality testAbstract
This study examines the impact of economic freedom on economic growth within the framework of globalization and human development. Using data from 1999 to 2022 for Turkey, the Toda-Yamamoto causality test is applied to analyze the dynamic relationships between variables. The findings reveal that economic freedom significantly influences economic growth and globalization, while human development also plays a crucial role in this interaction. Additionally, globalization’s effects on economic growth vary, indicating that its benefits depend on institutional and policy frameworks. The results suggest that while economic freedom fosters economic expansion, policymakers should consider balanced strategies that incorporate social and environmental factors. Furthermore, enhancing institutional quality and ensuring sustainable globalization policies are critical for long-term economic stability. This study contributes to the literature by highlighting the multidimensional role of economic freedom in economic development and providing policy insights for emerging economies.
Downloads
References
Abate, G. D. (2022). Foreign aid and economic growth: An inverted U-shaped relationship. Journal of International Development, 34(3), 456–472. https://doi.org/10.1002/jid.3590
Ahmad, M. (2017). Economic freedom and income inequality: Does political regime matter? Economic Research-Ekonomska Istraživanja, 30(1), 1781–1791. https://doi.org/10.1080/1331677X.2017.1392884
Aigheyisi, O. S. (2013). The effect of trade openness and financial liberalization on economic growth and human development in Nigeria. International Journal of Economics, Commerce and Management, 1(5), 1–17.
Altintaş, F. F. (2021). Ekonomik özgürlük performansı faktörleri arasındaki ilişki: Doğrulayıcı faktör analizi ile bir uygulama. Journal of Institute of Economic Development and Social Researches, 7(27), 1-13. https://doi.org/10.31623/iksad072701
Ausianikava, O. (2023). Globalization and economic growth: A cross-country analysis. Economic Modelling, 115, 105967. https://doi.org/10.1016/j.econmod.2022.105967
Boachie, M., Mensah, I., Sobiesuo, P., Immurana, M., Iddrisu, A.-A., & Kyei-Brobbey, I. (2014). Determinants of public health expenditure in Ghana: A cointegration analysis. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport, 2(2), 35-40. https://doi.org/10.12691/jbe-2-2-1
Bucak, T. (2022). Economic freedom and human development: Evidence from E7 countries. Journal of Economics and Political Economy, 9(1), 1–15.
Bucak, T., & Gacener Atış, A. (2021). The impact of social and political globalization on economic growth: Evidence from BRICS-T countries. Journal of International Trade and Economic Development, 30(2), 273–290. https://doi.org/10.1080/09638199.2020.1827213
Caselli, M. (2012). Trying to measure globalization: Experiences, critical issues and perspectives (C. 4). Springer Science & Business Media.
Çeştepe, H., Ergün Tatar, A., & Erdoğan, S. (2023). Economic globalization and economic growth: The case of Turkey. Journal of Economics, Finance and Accounting, 10(1), 1–15.
Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38(10), 1091-1110.
Duasa, J. (2007). Malaysian foreign direct investment and growth: Does stability matter? Journal of Economic Cooperation Among Islamic Countries, 28(2), 83-98.
Elian, M. I., & Suliman, A. H. (2015). Capital flows and the openness-growth nexus: Toda-Yamamoto causality modeling. The Journal of Developing Areas, 83-105.
Elliott, G., Rothenberg, T. J., & Stock, J. H. (1996). Efficient tests for an autoregressive unit root. Econometrica, 64(4), 813-836.
Faustino, H. C., & Vali, C. (2013). The effects of globalization on OECD income inequality: A static and dynamic analysis. Economic Modelling, 30, 602–608. https://doi.org/10.1016/j.econmod.2012.10.016
Gazel, S. (2017). BİST Sınai Endeksi ile çeşitli metaller arasındaki ilişki: Toda-Yamamoto nedensellik testi. Akademik Sosyal Araştırmalar Dergisi, 5(52), 287-299. https://doi.org/10.
Güney, T. (2017). Economic freedom and human development: Evidence from BRICS-T countries. International Journal of Economics and Financial Issues, 7(4), 389–397.
Gwartney, J. D., Holcombe, R. G., & Lawson, R. A. (2004). Economic freedom, institutional quality, and cross-country differences in income and growth. Cato Journal, 24(3), 205–233.
Gygli, S., Haelg, F., Potrafke, N., & Sturm, J.-E. (2019). The KOF globalization index – revisited. The Review of International Organizations, 14(3), 543-574. https://doi.org/10.1007/s11558-019-09344-2
Hasan, M., & Waheed, A. (2020). Foreign direct investment and human development in South Asian countries. Transnational Corporations Review, 12(1), 1–12. https://doi.org/10.1080/19186444.2020.1715816
Husain, I. (2000). Making globalization work for the poor case study of Pakistan, EMP-CIDA globalization project. Lahore University of Management Sciences, 1-28.
KOF Globalisation Index. (2024, Aralık 12). Retrieved February 3, 2025, from KOF Swiss Economic Institute website: https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html
Radulović, B., & Kostić, M. (2020). Globalization and economic growth: Evidence from Eurozone countries. Economic Research-Ekonomska Istraživanja, 33(1), 1822–1841. https://doi.org/10.1080/1331677X.2020.1761415
Samimi, P., Lim, G., & Buang, A. (2012). A critical review on synthetic globalization indexes. International Journal of Fundamental Psychology and Social Sciences, 2(1), 28-31.
The Heritage Foundation. (2025). Index of economic freedom: About the index. Retrieved February 2, 2025, from https://www.heritage.org/index
Toda, H. Y., & Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1-2), 225-250. https://doi.org/10.1016/0304-4076(94)01616-8
Topuz, S. K. (2017). Ülkelerin küreselleşme, demokrasi ve ekonomik büyüklük göstergeleri ile cinsiyet temelli gelişme endeksi arasındaki ilişkinin incelenmesi. Gazi Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 18(3), 779-799.
Tunçsiper, B., & Biçen, Ö. F. (2014). Economic freedoms and economic growth: An investigation on emerging market economies. International Journal of Economics and Financial Issues, 4(3), 509–519.
Tunçsiper, B., & Biçen, Ö. F. (2015). The relationship between economic freedom and economic growth: An application on emerging market economies. Procedia - Social and Behavioral Sciences, 195, 835–842. https://doi.org/10.1016/j.sbspro.2015.06.322
Ünkaracalar, E. (2022). The causality relationship between globalization and economic growth: Evidence from developing countries. Journal of Applied Economics and Business Research, 12(1), 1–15.
World Bank. (2025). World development indicators. Retrieved January 29, 2025, from https://databank.worldbank.org/source/world-development-indicators
Yavuz, N. Ç. (2006). Türkiye’de turizm gelirlerinin ekonomik büyümeye etkisinin testi: Yapısal kırılma ve nedensellik analizi. Doğuş Üniversitesi Dergisi, 7(2), 162-171.
Yay, S., & Ezanoğlu, Z. (2023). Ekonomik özgürlükler ve ekonomik büyüme birbiriyle ilişkili midir? Genel değerlendirme ve Türkiye üzerine bir analiz. Fiscaoeconomia, 7(2), 1334-1360. https://doi.org/10.25295/fsecon.1261507
Zapata, H. O., & Rambaldi, A. N. (1997). Monte Carlo evidence on cointegration and causation. Oxford Bulletin of Economics and Statistics, 59(2), 285-293. https://doi.org/10.1111/1468-0084.00065
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 EUROASIA JOURNAL OF SOCIAL SCIENCES & HUMANITIES
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The journal is licensed under a 