MERKEZ-ÇEVRE İLİŞKİLERİNDE GELİŞMİŞLİK DÜZEYİ AÇISINDAN ÜLKELER ARASI KURUMSAL KALİTE FARKLILIKLARININ DEĞERLENDİRİLMESİ

Abstract

Institutional economics approach reveals that institutions are essential in increasing social welfare by comprehensively addressing social and economic life. At the same time, institutional economics approach proceeds similarly to the problems discussed in the development literature. This study evaluates the developmental differences between countries in core, semi-periphery and periphery countries according to institutional quality differences. In the first part of the analysis, the core (upper and lower), semi-periphery (upper, middle and lower) and periphery (upper, middle, and lower) country groups were determined by the club convergence method using the data between 1990 and 2017. The second part of the analysis tests the institutional approach that explains the development differences between countries for eight country groups. Findings have revealed the effect of economic freedom on development in all subgroups of core, semi-periphery, and peripheral countries. In addition, while the effect of democracy on development has an increasing effect in core and semi-periphery country groups, the results in peripheral countries are found statistically insignificant.