Özet:

The aim of this study is to find the relationship between economic freedom and poverty for the period between 1995 and 2015. To this end, fixed effect models (FEM) and random effect models (REM) are put into use. Hausman test results are utilized to decide on the specification of the model. Although business and trade freedoms are included in the economic freedom, all three measures are used as the indicators of economic freedom separately in the models. Analyses revealed that there is a negative association between economic freedom and poverty. Population growth raises poverty. As a welfare state, government’s involvement by increasing expenditures on education lowers poverty. GDP, on the other hand, has a small negative effect on the poverty.

Anahtar Kelimeler: