Relationship of economic freedoms, democracy, political stability and economic growth

While liberalization has been experienced in the economic field with the globalization process in the world economies for the last thirty years, democracy has emerged as a global value in the political field. Within the scope of globalization, liberal economic thought and liberal economic policies have also become widespread. Especially with the neoliberal movements, libertarian ideas, whose sphere of influence has expanded economically, have become inevitable instruments for the economies of the countries, and the economic freedoms and continuity of political stability has become the focal point of macroeconomic developments in order to increase economic welfare. In this process, which has evolved from a bipolar world order to a multipolar world order, international organizations have had a greater say in the international economic system. In this context, in our study, the member countries of the Organization for Economic Development and Cooperation (OECD), which have an impact on the solution of economic and political problems in the world system, on a global scale, were preferred. In this doctoral thesis, the relations between democracy, economic freedoms, political stability and economic growth in OECD member countries classified as high-income countries for the period 1996-2019 are examined by using indicators of political stability, economic freedoms and democracy. In this study, selected OECD countries were analyzed by panel data method (panel unit root, panel cointegration). Along with these analyzes, Augmented Mean Group (AMG) and Common Correlated Effect (CCE) tests were applied for long-term parameter estimation in our study. In the study, it was concluded that OECD member countries are in an economically liberal economic order, political stability together with political authority are factors in the economic system, democracy, political stability and economic freedoms accelerate the economic growth process in the long run. Keywords: Democracy, economic freedoms, political stability, panel data analysis, panel cointegration