The Nexus between Governance Infrastructure and the Ease of Doing Business in Africa

2015 ◽  
pp. 110-131 ◽  
Author(s):  
Aye Mengistu Alemu
Keyword(s):  
Rule Of Law ◽  
Good Governance ◽  
Political Stability ◽  
Estimation Methods ◽  
African Countries ◽  
Government Effectiveness ◽  
Doing Business ◽  
Physical Infrastructure ◽  
Ease Of Doing Business ◽  
Governance Infrastructure

This chapter examines how each element of “good governance infrastructure” may influence the “ease of doing business” for a sample of 41 African countries from 2005 to 2012. The empirical results from GMM and other estimation methods reveal government effectiveness, political stability, rule of law, regulatory quality, and absence of corruption are robust determinants for creating conducive business atmosphere, taking into account other factors such as human capital, physical infrastructure, and the level of development of a country. Nevertheless, no evidence has been found for voice and accountability to significantly affect the ease of doing business. This implies that a government may enhance political stability, rule of law. Government effectiveness and low level of corruption is likely to create a more favorable business atmosphere despite offsetting deficiencies in voice and accountability.

scholarly journals The Governance and Tourism: A Case of Developing Countries

2021 ◽  
Vol 9 (3) ◽  
pp. 199-213
Author(s):  
Rana Ejaz Ali Khan ◽  
Tusawar Iftikhar Ahmad ◽  
Jaweria Haleem
Keyword(s):  
Rule Of Law ◽  
Good Governance ◽  
Developing Economies ◽  
Trade Openness ◽  
Tourism Development ◽  
Political Stability ◽  
Method Of Moment ◽  
Total Employment ◽  
Government Effectiveness ◽  
Regulatory Quality

Tourism is a rapidly growing industry globally and it is contributing a significant part in the GDP of the economies. In the literature, a variety of determinants of tourism are discussed theoretically and empirically but the effect of national governance on tourism is rarely discussed. This study investigates the effect of governance on tourism development in a panel of 65 developing economies for the time period of 2000-2015. Tourism development is measured by an index of three components, i.e. spending by international tourists, spending by local tourists and tourism’s share in total employment in the economy. For governance an index is constructed based on indicators of government effectiveness, political stability, regulatory quality, rule of law, and voice and accountability. Data has been taken from World Development Indicators (WDI), Worldwide Governance Indicators (WGI) and World Travel and Tourism Council (WTTC). Generalized Method of Moment (GMM) estimation indicates that governance positively influence tourism development and its components, i.e. foreign visitors spending, domestic tourist spending and contribution of tourism in employment. The indicators of governance, i.e. government effectiveness, political stability, regulatory quality, rule of law and voice and accountability also positively affect tourism development. Terrorism, environmental degradation and corruption have shown adverse effect on tourism development as well as components of tourism development. The economic growth and trade openness have encouraging effect on tourism development and its comments. It is concluded that through good governance tourism may be developed but terrorism and corruption are needed to be eliminated.

scholarly journals Mediating role of trust in the relationship between public governance quality and tax compliance

2022 ◽  
Vol 3 (4) ◽  
pp. 11-22
Author(s):  
Yusuf Mohammed Alkali ◽  
Abdulsalam Masud ◽  
Almustapha A. Aliyu
Keyword(s):  
Rule Of Law ◽  
Tax Compliance ◽  
Political Stability ◽  
African Countries ◽  
Public Governance ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Governance Quality ◽  
Control Of Corruption

This paper examined the mediating role of trust in government on the influence of public governance quality indicators (accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption) on tax compliance in Africa. Cross-country data obtained from 38 African countries for 2015 was used and analyzed using Ordinary Least Squares (OLS) regression analysis. The study found that accountability, political stability, control of corruption, and trust have a significant influence on tax compliance among the sampled African countries, but government effectiveness, regulatory quality, and the rule of law and have insignificant influence on tax compliance. The result of the mediating effects revealed that trust mediates the influence of accountability and political stability on tax compliance in Africa. However, it failed to mediate the influence of government effectiveness, regulatory quality, rule of law, and control of corruption on tax compliance among sample African countries. The study offers theoretical insights on the role of trust as a mediator on social exchange relationships from the context of public governance quality on tax compliance. It also implies to the policymakers that building trust is an important mechanism through which the impact of public governance on tax compliance would be more pronounced. The study further calls for replication of its findings in other continents such as the Americas, Asia, and Europe.

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.

scholarly journals Globalisation and governance in Africa: a critical contribution to the empirics

2018 ◽  
Vol 17 (1) ◽  
pp. 2-27 ◽  
Author(s):  
Simplice A. Asongu ◽  
Uchenna Efobi ◽  
Vanessa S. Tchamyou
Keyword(s):  
Political Stability ◽  
Policy Implications ◽  
Economic Governance ◽  
African Countries ◽  
Institutional Governance ◽  
Content Type ◽  
Government Effectiveness ◽  
Generalised Method Of Moments ◽  
Political Governance ◽  
Economic Globalisation

Purpose This study aims to assess the effect of globalisation on governance in 51 African countries for the period 1996-2011. Design/methodology/approach Ten bundled and unbundled governance indicators and four globalisation variables are used. The empirical evidence is based on Generalised Method of Moments. Findings Firstly, on political governance, while only social globalisation improves political stability, only economic globalisation does not increase voice and accountability and political governance. Secondly, with regard to economic governance: only economic globalisation significantly promotes regulation quality; social globalisation and general globalisation significantly advance government effectiveness; and economic globalisation and general globalisation significantly promote economic governance. Thirdly, with respect to institutional governance, while only social globalisation improves corruption-control, the effects of globalisation dynamics on the rule of law and institutional governance are not significant. Fourthly, the impacts of social globalisation and general globalisation are positive on general governance. Practical implications It follows that political governance is driven by voice and accountability compared to political stability; economic governance is promoted by both regulation quality and government effectiveness from specific globalisation angles; and globalisation does not improve institutional governance for the most part. Originality/value Governance variables are bundled and unbundled to reflect evolving conceptions and definitions of governance. Theoretical contributions and policy implications are discussed.

scholarly journals Institutional Analysis of Shadow Economy (Study on ASEAN 7 Developing Countries)

2020 ◽  
Vol 15 (1) ◽  
pp. 55
Author(s):  
Ana Rahmawati Wibowo ◽  
Wiwin Indrayanti
Keyword(s):  
Developing Countries ◽  
Rule Of Law ◽  
Shadow Economy ◽  
Secondary Data ◽  
Political Stability ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Negative Effect ◽  
And Control ◽  
Control Of Corruption

This study aims to analyze the institutional variables of governance in ASEAN 7 developing countries. The independent variables consist of Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption, while shadow economy is dependent variable. The data used in this study are quantitative data and secondary data by using program Stata 14, the analysis technique used is multiple linear regression panel data. The results show that Voice and accountability has a negative and significant effect on the shadow economy as well as Political stability, Government effectiveness and Control of corruption on the other side. Regulatory quality has a positive and significant effect on the amount of shadow economy. Meanwhile, Rule of law no significant effect on the shadow economy. Underlying the results, the study arranges some policy to reduce negative effect of shadow economy.

scholarly journals PENGARUH ELEMEN GOOD GOVERNANCE TERHADAP TINGKAT KORUPSI DI ASIA TENGGARA

2020 ◽  
Vol 25 (1) ◽  
pp. 96-114
Author(s):  
Dinda Ayu Dizrisa ◽  
Sudrajat Sudrajat ◽  
Niken Kusumawardani
Keyword(s):  
Rule Of Law ◽  
Good Governance ◽  
Linear Regression Analysis ◽  
Political Stability ◽  
Multiple Linear Regression Analysis ◽  
Economic Problem ◽  
Regulatory Quality ◽  
The Government ◽  
And Control ◽  
Control Of Corruption

Corruption is a complex social, political and economic problem and occurs in every country with different levels. Corruption will complicate democracy and governance of a country. To overcome the problem of corruption, the government must implement good governance. This study aims to provide empirical evidence regarding the effect of elements of good governance on the level of corruption in Southeast Asia. Good governance variables are presented by six variables: voice and accountability, political stability and absence of violence / terrorism, government effectiveness, regulatory quality, rule of law and control of corruption. Meanwhile, the level of corruption is measured using the Corruption Perceptions Index (CPI). The research sample was selected using the purposive sampling method and produced a sample of 8 countries and the observation period was carried out in 2009-2018 or as many as 10 years, so the number of samples in this study were 80 samples. Corruption level data used in this study uses the Corruption Perceptions Index (Transparency International), while the good governance data used in this study uses the Worldwide Governance Indicators (World Bank). The research methodology used in this study is multiple linear regression analysis with the IBM SPSS Statistics 24 program. The results showed that the variable voice and accountability, political stability and absence of violence / terrorism, and rule of law had no effect on the level of corruption, whereas the government variable effectiveness, regulatory quality, and control of corruption affect the level of corruption.

scholarly journals The relationship between government, market and enterprises in Vietnam

2014 ◽  
Vol 17 (1) ◽  
pp. 16-28
Author(s):  
Dao Thi Thieu Ha
Keyword(s):  
Economic Freedom ◽  
Government Effectiveness ◽  
Clear Cut ◽  
Governance Indicators ◽  
Doing Business ◽  
The World ◽  
Economic Freedom Index ◽  
Ease Of Doing Business ◽  
The Government ◽  
The Relationship

This article analyses the reality relationship among government, market and enterprises in Vietnam in the period of 1996-2012. We find out that: (i) the effectiveness of government indicators such as ease of doing business index, the economic freedom index, the government effectiveness indicators (belong to the governance indicators) improved considerably overtime but have not reached the average level of the world; (ii) the relationship between government and enterprises has not been clear-cut. As a result, though many reforms have been conducted, state owned enterprises still take up a high percentage in many industries and enjoy multiple preferential polices while operate inefficiently. This articles also points out the reasons of the situation and gives some recommendations for solving those problems.

scholarly journals Effect of Governance on Educational Performance in Nepal

2021 ◽  
Vol 11 (1) ◽  
pp. 97-114
Author(s):  
Jiban Khadka
Keyword(s):  
Good Governance ◽  
Political Stability ◽  
Educational Performance ◽  
Line Graphs ◽  
Government Effectiveness ◽  
Secondary Sources ◽  
Multiple Line ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Control Of Corruption

Good governance often seems to have accelerated educational performance. Stepping onto the contribution of governance to the education, this paper examines the effect of Worldwide Governance Indicators produced by Kaufmann et al. (1999) on Educational Performance (EP) of Nepal during the years from 1996 to 2018. The six indicators of WGIs: political stability and absence of violence, government effectiveness, voice and accountability, regulatory quality, control of corruption and rule of law are used as independent variables, and the educational performance (student learning achievement and education index) as a dependent variable.  The results, based on the data collected from the secondary sources, derived from multiple-line graphs and the regression model shows that the majority of WGIs insignificantly explained the educational performance across the years. One indicator namely government effectiveness is found as a negative significant predictor of EP. The findings of this study suggest to reform in the existing level of WGIs for the better educational performance.

scholarly journals Increasing Supply of Tradable Goods in the Common Market for Eastern and Southern Africa (COMESA)

2015 ◽  
Vol 1 (2) ◽  
pp. 73-117
Author(s):  
Macleans Mzumara
Keyword(s):  
Foreign Direct Investment ◽  
Rule Of Law ◽  
Direct Investment ◽  
Institutional Quality ◽  
Political Stability ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Tradable Goods ◽  
And Control ◽  
Control Of Corruption

The author investigated the nature of institutional quality in the Common Market for Eastern and Southern Africa (COMESA) on the basis of voice and accountability political stability, government effectiveness, regulatory quality, rule of law and control of corruption. The author further investigated the existence of a link between institutional quality and factors of production. The results show that capital, entrepreneurship and foreign direct investment are the major determinants of production of tradable goods in COMESA. In exception of Mauritius and Namibia (currently no longer a member) the rest of COMESA member states have very poor institutional quality. This affects their ability to attract foreign direct investment hence production of tradable goods. Voice and accountability, government effectiveness, rule of law and political stability play a major role in increasing production of tradable goods in COMESA. Foreign direct investment is affected by voice and accountability, rule of law and political stability than any other factors. Availability of raw material is affected by government effectiveness, regulatory quality, political stability, voice and accountability and control of corruption. Capital is very sensitive to issues of voice and accountability and control of corruption and regulatory quality.

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