Abstract:

This study was analyzed by the panel data analysis method, taking into account the exchange rates for China, India, Brazil, Mexico, Russia, Indonesia and Turkey, which are E-7 countries, the direct foreign halves; the impact of national income per person and government spending on economic freedoms, using annual data from the period [2000-2016], taking into account the horizontal cutting dependency. The stagnation of the series; the second-generation unit root tests that take into account the horizontal cut dependency were studied by the Hadri-Kurozumi (2012) test. The presence of the integration relationship was studied with the LM bootstrap test Westerlung-Edgerton (2007) and the AMG 2009 (Augmented Mean Group estimator) method was used to predict long-term ratings after the integration analysis. According to the study, the effects of exchange rates, foreign direct investments, national income per person and government spending on economic freedoms; the negative, foreign direct investments, national income per person and government spending have a positive statistically meaningful impact.