The Relationship of Institutional Quality and Economic Growth: The Case on Selected European Union Candidate Countries

Abstract

The aim of this study is to investigate the effect of corporate governance quality of countries on growth. For this purpose, research was conducted in the sample of Turkey, Montenegro, Serbia, Albania and North Macedonia, which are candidate countries for the European Union. In the study, a period of 16 years, 2005-2020, was examined. In the study, the GDP growth rate was used as the dependent variable, and 6 variables indicating the quality of corporate governance were used as independent variables. Westerlund cointegration test and Mean Group Estimator were used as methods in the study. As a result of the study, it is seen that the variable of accountability negatively affects the dependent variable of gross domestic product