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Impact of Openness and Economic Freedom on Economic Growth in the Transition Economies of the European Union

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  • Yilmaz Bayar

    (Usak University)

Abstract

The globalization process has accelerated, particularly as of the 1980s, and countries began to remove obstacles on the flows of goods, services and capital. Hence, substantial increases have resulted in both global trade volume and cross-border capital flows. Moreover, countries have improved their institutional and legal infrastructure to achieve sustainable economic growth and attract foreign capital. This study examines the impact of openness and economic freedom on the economic growth of the transition economies in the European Union during the 1996-2012 period, through the use of panel data analysis. We have found there is a long-run relationship among the variables and both economic freedom and trade openness have a positive impact on economic growth, while financial openness has a negative impact on economic growth

Suggested Citation

  • Yilmaz Bayar, 2016. "Impact of Openness and Economic Freedom on Economic Growth in the Transition Economies of the European Union," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 14(1), pages 7-19.
  • Handle: RePEc:seb:journl:v:14:y:2016:i:1:p:7-19
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    File URL: http://www.asecu.gr/Seeje/issue26/issue26-bayar.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ivana Brkić & Nikola Gradojević & Svetlana Ignjatijević, 2020. "The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 13(2), pages 1-13, February.

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    More about this item

    Keywords

    Openness; Economic Freedom; Economic Growth; Panel Data Analysis;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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