scholarly journals Corruption, governance and economic growth in Sub-Saharan Africa: a need for the prioritisation of reform policies

2014 ◽  
Vol 10 (2) ◽  
pp. 316-330 ◽  
Author(s):  
Kamil Omoteso ◽  
Hakeem Ishola Mobolaji
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Political Stability ◽  
Content Type ◽  
Governance Indicators ◽  
Data Framework ◽  
Regulatory Quality ◽  
The Impact ◽  
Control Of Corruption ◽  
Ssa Countries

Purpose – This study aims to investigate the impact of governance indices (especially control of corruption) on economic growth in some selected Sub-Sahara African (SSA) countries with a view to making policy recommendations. Specifically, the study attempts to assess whether either governance reforms (especially those relating to control of corruption) or simultaneous policy reforms could have any impact on the growth of the sample SSA countries. Design/methodology/approach – The governance indicators used in this study were drawn from the PRS Group and the Worldwide Governance Indicators for 2002-2009, while the real gross domestic product (GDP) per capita growth data were obtained from the World Bank database. The study covered 47 SSA countries, and it adopted the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analyses. Findings – The study found that political stability and regulatory quality indicators have growth-enhancing features, as they impact on economic growth in the region significantly, while government effectiveness impacts negatively on economic growth in the region. Despite, several anti-corruption policies in the region, the impact of corruption control on economic growth is not very obvious. The study also found that simultaneous implementation of the voice and accountability and the rule of law indicators has more positive impact on economic growth in the region. Both policies are complementary, and, hence, can be pursued simultaneously. Research limitations/implications – The results suggest that reform efforts that aim at enhancing accountability, regulatory quality, political stability and the rule of law have more growth-enhancing features and, thus, should be given more priority over reform efforts that singly address the issue of control of corruption due to the endemic, systemic and ubiquitous nature of corruption in the region. Practical implications – The study suggests that reform efforts that aim at enhancing accountability, regulatory quality and rule of law have more growth-enhancing features and, therefore, should be given more priority. Originality/value – Many previous studies attempted to examine the impact of corruption on economies, but this paper tries to assess the effect of corruption control and other governance indices on economic growth in the most vulnerable region of the world, the SSA. Besides, the study adopts the panel data framework which makes it possible to allow for differences in the form of unobservable individual country effects.

Applying Synthetic Control Method to Estimate the Impact of the Lava Jato Operation on the Worldwide Governance Indicators in Brazil

2021 ◽  
pp. 2631309X2110178
Author(s):  
Eduardo Carvalho Nepomuceno Alencar ◽  
Bryant Jackson-Green
Keyword(s):  
Rule Of Law ◽  
Control Method ◽  
Synthetic Control ◽  
Synthetic Control Method ◽  
The Rule Of Law ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Legal Judgments ◽  
The Impact ◽  
Control Of Corruption

In 2014, the most prominent anti-corruption investigation in Latin America called Lava Jato, exposed a Brazilian corruption scheme with reverberations in 61 countries, resulting in legal judgments for nearly 5 billion USD in reimbursements thus far. This article applies the synthetic control method on data from 135 countries (2002–2018) to test the hypothesis that Lava Jato impacts the Worldwide Governance Indicators in Brazil. The findings reveal that Lava Jato negatively affects control of corruption, the rule of law, and regulatory quality. There are signs of possible improvement in at least the corruption and the rule of law measures. This paper brings value to the criminological body of literature, notably lacking in the Global South.

scholarly journals Rule of Law, Corruption Control, Governance, and Economic Growth in Managing Renewable and Nonrenewable Energy Consumption in South Asia

2021 ◽  
Vol 18 (20) ◽  
pp. 10637
Author(s):  
Haider Mahmood ◽  
Muhammad Tanveer ◽  
Maham Furqan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Rule Of Law ◽  
Political Stability ◽  
Energy Sources ◽  
The Rule Of Law ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Nonrenewable Energy

Strong governance is vital for developing environmental policies to promote renewable energy consumption and discourage nonrenewable energy sources. The present research explores the effect of economic growth and different governance indicators on renewable and nonrenewable energy consumption in Pakistan, India, Bangladesh, and Sri Lanka using data from 1996 to 2019. For this purpose, the study uses different econometric techniques to find the long-term effects of the rule of law, regulatory quality, corruption control, government effectiveness, political stability, voice and accountability, and economic growth on oil, natural gas, coal, hydroelectricity, and renewable energy consumption. The results show that economic growth has a positive impact on all investigated renewable and nonrenewable energy sources. Additionally, regulatory quality measures also increase all types of renewable and nonrenewable energy consumption. Except for natural gas, the impact of the rule of law is negative, and government effectiveness positively affects all energy sources. Control of corruption has a positive effect on natural gas consumption. Political stability has a negative effect on nonrenewable energy sources and a positive impact on renewable energy sources. The magnitudes of the effects of economic growth and most governance indicators are found to be larger on nonrenewable sources than renewable sources. The testing of the energy consumption and governance nexus is scant in global literature and is missing in South Asian literature. Hence, the study results contribute to how South Asian economies can be more sustainable in energy use by enhancing governance indicators in the economies. Particularly, the results imply that these countries should focus on improving the rule of law, corruption control, governance, regulatory quality, political stability, and economic growth to help maintain a sustainable balance of renewable and nonrenewable energy sources. Moreover, this issue needs further attention in developing countries, as governance indicators would play an effective role in promoting sustainable energy.

scholarly journals A Comparative Study on Contribution of Governance on Economic Growth Countries in the East African Community

2016 ◽  
Vol 3 (2) ◽  
pp. 89 ◽  
Author(s):  
Joseph Abuga Orayo ◽  
George Nyarigoti Mose
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Rule Of Law ◽  
Good Governance ◽  
Political Stability ◽  
Economic Growth Rate ◽  
East African Community ◽  
Governance Indicators ◽  
And Control ◽  
Control Of Corruption

<p>This study sought to explore the relationship between good governance and economic growth among the East Africa Community (EAC) countries. The study utilized panel data to analyse six major World Bank governance indicators namely: Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption effect on economic growth in the respective country and region for the period 1999-2013. The Random effect model (REM) and Ordinary Least Square (OLS) estimation techniques were employed for comparative analysis. The study showed that among the governance indicators, political stability, quality regulatory and control of corruption were significant. The first two indices were negatively related to economic growth rate while the latter was positively related to economic growth rate. From the OLS models, voice and accountability had a significant effect on economic growth rate in Kenya and Uganda. The quality of regulation had significant effect in Kenya and Tanzania while rule of law was found to be significant only in Kenya. The study suggests that in order to advance the economic performance in EAC countries, the EAC states need to invest in more effective regulation on both public and private institutions to enhance social, political and sustainable economic interactions. Similarly, the government needs to encourage national cohesion and peaceful co-existence that would foster political stability and reduce violence. By investing in good governance through establishment of key institutions of governance are likely to spur economic growth.</p>

scholarly journals Assessing the impact of institutions on economic growth in the BRICS countries

2021 ◽  
Vol 2 (4) ◽  
pp. 30-46
Author(s):  
Ayushi Tiwari ◽  
Tridisha Bharadwaj
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Political Stability ◽  
Physical Capital ◽  
Government Effectiveness ◽  
Brics Countries ◽  
Regulatory Quality ◽  
And Control ◽  
The Impact ◽  
Control Of Corruption

This study examines the impact of institutional quality on economic performance in the BRICS countries for the period from 2002 to 2019. The panel data study was estimated using pooled OLS and a fixed effect model. The study employed six institutional quality indicators (Worldwide Governance Indicators) which included voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law, and control of corruption. The study also controlled for conventional sources of growth, i.e. human capital, physical capital, government expenditure, and inflation. All of these factors were positive and significant in our study. The findings also reveal that government effectiveness, regulatory quality and control of corruption had a positive and significant impact on economic growth in the BRICS countries, whereas other institutional variables turned out to be insignificant.

scholarly journals Does Good Governance Matter? Kazakhstan’s Economic Growth and Worldwide Governance Indicators

2020 ◽  
Vol 10 (1) ◽  
pp. 1-13
Author(s):  
Aikozha Absadykov
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Good Governance ◽  
Political Stability ◽  
Gdp Per Capita ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Per Capita ◽  
The Relationship ◽  
Control Of Corruption

Good governance is generally believed to improve country’s economic performance. This paper studies the relationship between the World Bank’s Worldwide Governance Indicators (Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law, Control of Corruption) and economic growth in terms of GDP per capita in Kazakhstan. The findings of the research indicate that there is a significant positive relationship between good governance and economic performance of Kazakhstan. Specifically, results show that the Control of Corruption has the strongest impact on GDP per capita. 

scholarly journals Attracting Chinese FDI in Africa

2018 ◽  
Vol 14 (2/3) ◽  
pp. 139-153 ◽  
Author(s):  
Shan Shan ◽  
Zhibin Lin ◽  
Yulei Li ◽  
Yan Zeng
Keyword(s):  
Natural Resources ◽  
Rule Of Law ◽  
Political Stability ◽  
Institutional Factors ◽  
Market Size ◽  
Content Type ◽  
Chinese Investment ◽  
Regulatory Quality ◽  
And Control ◽  
Control Of Corruption

Purpose The purpose of this paper is to examine the effect of natural resources, market size and five major institutional factors (voice and accountability; political stability and absence of violence; regulatory quality; rule of law and control of corruption) on Chinese foreign direct investment (FDI) in Africa. Design/methodology/approach This study uses regression analysis on panel data across 22 countries for the period 2008-2014. Findings Natural resources did not play a significant role in attracting Chinese investments, but market size did. Among the institutional factors, only voice and accountability had a significant and positive effect on attracting Chinese FDI; the effects of rule of law and control of corruption were not significant and political stability and regulatory quality had a significant and negative effect. Research limitations/implications Chinese investment in Africa is only a recent phenomenon, and is growing rapidly; further studies should examine factors that are unique to the context such as bilateral political link. Practical implications African countries that are struggling with improving their poor institutional quality in the short term could effectively attract Chinese investment by reducing investor psychic distance, e.g. establishing a closer political link with China. Nevertheless, in the long term, measures of improving institutional quality are important. Originality/value This study reveals for the first time that what attracts Chinese investment is market size rather than natural resources, and different institutional factors of an African country show varying effects on attracting Chinese FDI.

scholarly journals Nexus between Governance Indicators & Sustainable Stock Market Development in Pakistan: Evidences from Symmetric and Asymmetric Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Kashif Islam ◽  
Ahmad Raza Bilal
Keyword(s):  
Stock Market ◽  
Rule Of Law ◽  
Negative Impact ◽  
Political Stability ◽  
Market Development ◽  
Stock Market Development ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Non Linear ◽  
The Impact

The hidden non-linear association between governance indicators & stock market development (SMD) of Pakistan has been scrutinized in this study by using two comparative co-integrating techniques known as ARDL (Auto-regressive Distributed Lag) & NARDL (Non-linear ARDL). Empirical evidence suggests that misrepresented inferences arise by ignoring hidden non-linearity nexus between the variables. The ARDL results indicate that political stability & absence of violence/terrorism does not impact directly the SMD of Pakistan. Voice & accountability positively and significantly impact SMD, but rule of law does not impact SMD of Pakistan directly. The regulatory quality is highly significant and negatively impacts SMD. Contrarily, the NARDL frame indicates significant differences amid coefficients of components of governance index, denoting asymmetric links between variables. The Positive & Negative sums of partial decompositions of Rule of Law, Regulatory Quality, Political Stability & Absence of Violence/Terrorism (PS&AVT), and Voice & Accountability (V&A) significantly impact SMD. The impact of partial Negative multipliers of Regulatory Quality, and PS&AVT has a highly significant and negative impact, while V&A has a significant and positive impact on SMD. The impact of Positive partial multipliers of all variables is positive and significant except V&A. The comparative diagnostics extricate precariousness in policy moratorium. This study will add credence to the predictive power of governance indicators towards SMD of Pakistan by incorporating Positive and Negative decomposed multipliers.

scholarly journals Corruption Prevention and Economic Growth: A Mediating Effect of Rule of Law

2018 ◽  
Vol 6 (2) ◽  
pp. 128 ◽  
Author(s):  
Qian Hongdao ◽  
Ayesha Mumtaz ◽  
Hamid Mukhtar ◽  
Hafiz Abdul Rahman Saleem ◽  
Sonia Azam
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Empirical Studies ◽  
Mediating Effect ◽  
Governance Indicators ◽  
The World ◽  
Corruption Prevention ◽  
The Impact ◽  
The Relationship ◽  
Control Of Corruption

This article is based on the mediating effect of rule of law between control of corruption and economic growth in China. Many empirical studies have been conducted on the relationship of corruption with economic growth, income, democracy, education, employment rate and the likes. Most of them are based on linear relationship and evaluate the impact of corruption and corruption prevention on different economic and social variables. But the study under consideration is focusing upon the role of rule of law in control of corruption and economic growth in China. It puts forth a question that what kind of effects rule of law put on economic growth and corruption prevention. The top seven economies of the world have been selected and data has been extracted from the Worldwide Governance indicators of the World Bank. In order to address the above question, the study was divided into two major parts. First, the author has applied regression analyses to see the relationship among the economic growth, rule of law and corruption; and also the impact of economic growth and control of corruption on rule of law. Then, mediation analysis has been conducted to see if rule of law plays a role in control of corruption and economic growth. The results show that economic growth significantly improve the level of control of corruption and rule of law plays a partial intermediary role in the process of economic development to enhance the corruption prevention. Second, the author has discussed the condition of rule of law and corruption in the era of the current leader, Xi Jinping and before 2012.

scholarly journals The Impact of the Institution on Economic Growth: An Evidence from ASEAN

2021 ◽  
Vol 19 (1) ◽  
pp. 17-26
Author(s):  
Vita Kartika Sari ◽  
Dwi Prastyani
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Institutional Factors ◽  
Estimation Model ◽  
Panel Data Estimation ◽  
Regulatory Quality ◽  
And Control ◽  
The Impact

The ideal community life structure has a strong institutional level. Economists agree on the institution as an important factor in creating economic growth. The purpose of this study was to investigate the influence of institutional factors on economic growth in ASEAN. Institutional variables include political stability, voice and accountability, government effectiveness, regulatory quality, rule of law, and control of corruption, while economic variables include exports and imports. This study utilized panel data estimation on 10 countries in ASEAN during 2002-2018. The fixed effect model was the best estimation model. The findings show that there are three keys of institutions that had a significant influence on per capita GDP on ASEAN, namely voice and accountability, regulatory quality, and rule of law. It could be that if the institutional factors are weak, it will be detrimental to economic performance. The policy implication is that the synergy of all stakeholders needs to be improved for better institutional enforcement.

scholarly journals Hypothesizing directional causality between the governance indicators and economic growth: the case of Afghanistan

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Mohammad Naim Azimi ◽  
Mohammad Musa Shafiq
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Time Series Data ◽  
Political Stability ◽  
Wald Test ◽  
Series Data ◽  
Vector Autoregressive ◽  
Government Effectiveness ◽  
Governance Indicators ◽  
The Government

AbstractThis paper examines the causal relationship between governance indicators and economic growth in Afghanistan. We use a set of quarterly time series data from 2003Q1 to 2018Q4 to test our hypothesis. Following Toda and Yamamoto’s (J Econom 66(1–2):225–250, 1995. 10.1016/0304-4076(94)01616-8) vector autoregressive model and the modified Wald test, our empirical results show a unidirectional causality between the government effectiveness, rule of law, and the economic growth. Our findings exhibit significant causal relationships running from economic growth to the eradication of corruption, the establishment of the rule of law, quality of regulatory measures, government effectiveness, and political stability. More interestingly, we support the significant multidimensional causality hypothesis among the governance indicators. Overall, our findings not only reveal causality between economic growth and governance indicators, but they also show interdependencies among the governance indicators.

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