The relationship between economic growth and institutional variables: A panel cointegration analysis for EU countries

WOS:000763302900004The principle of governance, which was used for the first time by the World Bank, was adopted and put into practice by the European Union. The European Union (EU) has envisaged serious change and transformation in the administrative system of the member and candidate countries within the framework of the principle of governance and has shaped the legal and institutional framework for this. The aim of this study prepared based on these developments is to analyze the performance of the member and candidate countries in terms of economy and governance indicators in the period between 1996 and 2019, taking into account the institutional structure of the EU. In the study, the relationship between economic growth and institutional variables has been tried to be examined, based on the EU’s member and candidate countries. In the research, long-term relationships between economic growth and institutional variables are determined by taking into consideration the panel data analysis. According to the findings of the study, there is a positive and statistically significant relationship between economic growth and political stability and absence of violence and control of corruption for the EU countries in the long run