International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online)

Relationship of the between Fiscal Rule, Human Development and Corruptıon for Selected EU Countries (An Econometrıc Analysis)
Atilla Ahmet UĞUR, Demet ÖZOCAKLI

Abstract
Fiscal rules which have a long historyhave been applied in various areas in many countries andtheir popularity has increased in recent years.It has been stated thatin the theoretical sense fiscal rules have been initially derived from Public Choice Theory.Public Choice Theory is defending both the homoeconomicus hypothesis that assumes the existence of actors within the state that are trying to maximize their own interests and the hypothesis of gains from the exchange which suggests that the institutional framework should be chosen in such a way that all actors can benefitin the public economy.In this paper the relationship between the open rule that is among the fiscal rule applications and the human development index which is accepted as democratic development criteria and the corruption perception index have been examined in the scope of 25 European Union (EU) countries in the period of 2000-2015.In order to examine this relationship, Panel Data Analysis was applied and the most effective estimation method was chosen as a result of the tests performed.According to the results of analysis on the sample of 25 European Union countries, there is a negative and strong relationship between the open rule and the human development index, and a positive relationship has been found between the corruption perception index and the open rule for thementioned countries.

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