Abstract
The principle of governance, which was used for the first time by the World Bank, was adopted and put into practice by the European Union. The European Union (EU) has envisaged serious change and transformation in the administrative system of the member and candidate countries within the framework of the principle of governance and has shaped the legal and institutional framework for this. The aim of this study prepared based on these developments is to analyze the performance of the member and candidate countries in terms of economy and governance indicators in the period between 1996 and 2019, taking into account the institutional structure of the EU. In the study, the relationship between economic growth and institutional variables has been tried to be examined, based on the EU’s member and candidate countries. In the research, long-term relationships between economic growth and institutional variables are determined by taking into consideration the panel data analysis. According to the findings of the study, there is a positive and statistically significant relationship between economic growth and political stability and absence of violence and control of corruption for the EU countries in the long run.
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Availability of Data and Material
The data sets analyzed during the current study are available in the World Bank database. The data that support the findings of this study are available on request from the corresponding author Emin Ahmet Kaplan. Data supporting the results reported in the article can be obtained from the corresponding author.
Code Availability
The codes used in this study are available from on request from the corresponding author.
Notes
Twenty-seven EU member countries have been taken into account for the analysis. These are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
Seven EU candidate countries were taken into account for analysis. These are Albania, Bosnia and Herzegovina, Kosovo, Montenegro, The Republic of North Macedonia, Serbia and Turkey.
The data of the variables in the WGI database are included in the years 1996, 1998, and 2000 in a single year, and since 2002, in continuous. The data for 1997, 1999, and 2001 were derived by the researchers by the interpolation method. Most economic time series are highly manufactured products, constructed out of many bits and pieces that must be shaped and rearranged to yield the final series. One of the commonest operations performed in this process is interpolation: estimation of some component for dates for which it is not directly available from known values of that component for other dates (Friedman, 1962:729).
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All authors contributed to the study conception and design. Material preparation, data collection, and analysis were performed by Abdulvahap Akıncı, Sefa Usta, and Emin Ahmet Kaplan. The first draft of the manuscript was written by Sefa Usta, and all authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.
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Akıncı, A., Usta, S. & Kaplan, E.A. The Relationship Between Economic Growth and Institutional Variables: a Panel Cointegration Analysis for EU Countries. J Knowl Econ 14, 2395–2419 (2023). https://doi.org/10.1007/s13132-022-00928-9
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DOI: https://doi.org/10.1007/s13132-022-00928-9