Akademik Veri Yönetim Sistemi
5th International Congress of Multidisciplinary Social Sciences, Ankara, Türkiye, 21 - 22 Mayıs 2023, ss.185
The democratic system that exists in a country and is implemented in the political and economic institutions can be effective in the economic growth of the country. A variable such as democracy that covers various aspects of countries' economic, political, and cultural aspects is effective in economic growth caused the democracy-economic growth relationship to be considered in many studies in the literature. However, there is no consensus on the economic consequences of this relationship in the literature. While some studies in the literature argue that democracy has a positive effect on economic growth, others state that democratization leads to a decline in economic growth.
This study aims to examine the impact of employment, trade openness, inflation, energy productivity, and electoral democracy index on the GDP of 25 developing countries with the data between the period 1998-2021. For this purpose, panel data were used in the study and conducted unit root tests, panel cointegration tests, and PMG panel ARDL analysis to reveal both long- and short-term relationships between these variables and GDP.
In the long run, the results indicated that employment, trade openness, and energy productivity have a positive effect on GDP, while the electoral democracy index has a negative impact in this period. Inflation does not significantly affect GDP in the long run, but in the short run, both inflation and energy productivity have a significant impact on GDP. While inflation has a negative effect on GDP, energy productivity has a positive effect on GDP. The findings suggest a long-term equilibrium between GDP and the independent variables. However, country-wise results show that none of the variables do not have any significant impact on GDP in the short run for India, Nigeria, Pakistan, and Türkiye. This unique study provides empirical evidence for the PGM model for each country, allowing for policy implications specific to the 25 developing countries.