Abstract:

In this study, the effect of globalization, economic development and the size of the public sector in the economy on the level of democratization for the Newly Industrialized Countries (Brazil, China, India, Indonesia, Malaysia, Mexico, Philippines, South Africa, Thailand, Turkey) was tested with panel data analysis method using the 2003-2017 period annual data. Freedom House Index, KOF Index, per capita national income and share of the public sector total final consumption expenditures in the gross domestic product were used as variables. The stationarity of the series was tested with the CIPS panel unit root test, one of the second generation unit root tests, developed by Pesaran (2007). In addition, the Driscoll-Kraay Model Estimation approach was used in the study and the causality relationship was estimated by Dumitrescu and Hurlin (2012) test. According to panel data analysis results, it has been determined that globalization has a negative effect, whereas the size of the public sector in the economy and economic development has a positive effect above the level of democratization. It has also been concluded that there is a one-way causality relationship from economic development to the size of the public sector.

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