Analysis of the relationship between global competition and economic freedom by logistic regression method

Globalization, countries' ability to carry out their commercial activities in mutual communication using information and technologies, to make raw material and intermediate goods exchanges, to make the legal decisions made in the world countries compatible with each other in all countries, to ensure that foreign people enter new markets as a result of the borders open to foreign people, The desire to save by making service production in countries with cheap labor costs means the removal of export-import restrictions and customs tariffs. The globalization of countries has led to global competition and businesses operating in the countries have almost competed with each other to produce cheap and quality goods and services. It is obvious that the companies operating in the countries will be able to compete only in line with the benefits of freedoms. Freedom means that individuals can freely carry out their economic activities in line with legal frameworks. The existence of economic freedoms brings the development of the country's economy, the increase in trade volume and economic growth. The aim of the study is to determine the effect of countries' economic freedom levels on global competitiveness, to determine which economic freedom components countries should focus on in order to compete, and the effect of macroeconomic factors on global competitiveness. form. For this purpose, the global competitiveness power, which is the dependent variable, was categorized and made compatible with the binary logistic regression analysis method. In the study covering 2016, 2017 and 2018, the economic freedom index prepared jointly by the Heritage Foundation and the Wall Street Journal, shows the international competitiveness of the countries. In addition to being an indicator, it also included the variables that can be considered important in the measurement of competitiveness, which constituted the infrastructure of this study. The idea that the macroeconomic indicators of the countries may have an impact on the level of international competition made it necessary to examine the effect of macroeconomic indicators (gross domestic product, real effective exchange rate, rifle and interest) on the level of global competitiveness. As a result of the analysis, if a country wants to increase its level of global competitiveness, it should focus on freedom components such as property rights, public integrity, freedom of trade, freedom of investment, monetary freedom, judicial activity, freedom of work and labor, while reducing public spending and reducing the tax burden. While the increase in GDP and the decrease in CPI have a positive effect on the level of global competitiveness of the country, it is determined that the REDK variable has a positive effect only on global competitiveness for 2017, while the interest rate variable has no significant effect on global competitiveness.