Sürdürülebilir Kalkınma Amaçları
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- MakaleAçık Erişim2023The Nexus between Institutional Quality and Inflation in Emerging Markets: A Panel Causality Test with a Fourier Function
Cicen, Yildirim Beyazit
It is important to note that institutional quality has a substantial impact on a country's long-term economic growth, which influences other economic indicators, such as inflation and monetary policy. An indepth examination of the existence of this crucial relationship was conducted by applying a novel and robust panel Yilanci-Gorus Fourier causality test between 2000 and 2019 to 24 developing countries, in order to detect this relationship. A recent inflation rate, the standard deviation of inflation, and sound money are all interconnected and mutually causally related to property rights and the quality of the legal system. Weakness in institutions can exacerbate financial shocks, thereby affecting monetary indicators, and monetary policies will deteriorate the quality of the institution as a result.
- MakaleYalnız künye2023Institutional Quality and Unemployment in OECD Nations: A Panel Causality Test Using a Fourier Function
Cicen, Yildirim Beyazit
A significant impact of institutional quality on sustainable growth has been revealed in recent studies. This study aims to examine the relationship between different institutions and their unemployment rates, considering the legal system and property rights index. A novel and robust panel Fourier causality test was conducted to investigate 38 OECD nations for the relationship between their institutional quality and unemployment rates between the years 2000 and 2018. Regardless of stationarity, the adopted method allowed for the endogenous identification of structures, locations, and forms, and the evaluation of causal relationships. In addition, the Fourier method and the trigonometric terms were used for analyzing the structural changes. According to the findings, a unidirectional causal relationship existed between the quality of the legal system and property rights and the unemployment rates in the investigated nations during the relevant period. In addition, bidirectional causality existed between the variables in Germany and the United States. It is therefore recommended to necessarily improve a nation’s institutional structure to reduce its unemployment rate. Low unemployment rates would be achieved by improving institutional quality, particularly in developing nations. Therefore, policymakers must focus on formulating policies to reduce unemployment in the long run, considering the legal system and property rights of the nation.