scholarly journals Is Good Governance Really a Significant Statistical Issue for Current African Economies? The Case of ECOWAS Countries

2018 ◽  
Vol 10 (6) ◽  
pp. 75
Author(s):  
Souadou Baldé ◽  
Saidatou Dicko
Keyword(s):  
Economic Growth ◽  
Good Governance ◽  
Negative Relationship ◽  
Political Stability ◽  
Foreign Direct Investments ◽  
Public Governance ◽  
Governance Indicators ◽  
Statistical Issue ◽  
Triangular Relationship

This study examines the triangular relationship between the flows of foreign direct investments (FDIs), public governance as measured by WGIs (Worldwide Governance Indicators) and economic growth in the 15 countries of the Economic Community of West African States (ECOWAS) between 1996 and 2011. The authors conclude that there is a negative relationship between FDIs and economic growth. More importantly, the effect of public governance was analyzed using the estimated coefficients of the variables voice and accountability, quality of regulation, government effectiveness, political stability and absence of violence, rule of law and corruption control, and the results showed that for half of these indicators, governance contributes negatively to the economic growth of ECOWAS countries.

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 THE ALGERIAN ECONOMY GOVERNED BY BLACK CORRUPTION: AN EMPIRICAL STUDY FROM 2002 TO 2015

2016 ◽  
Author(s):  
Sissani Midoun
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Political Stability ◽  
Multiple Regression Model ◽  
Gdp Growth Rate ◽  
Corruption Index ◽  
Cumulative Knowledge ◽  
Free Media

The main objective of this paper is to highlight the concept of corruption and analyses our cumulative knowledge about corruption’s effects on the economic growth in Algeria during the period 2002–2015. This article emphasizes the major source of corruption and how the quality of institutions and government policies could mitigate the risk of corruption or increase it. The findings also show the great role of free media in most developing countries which created a new tendency to talk about the effects of corruption especially in recent years. Using a multiple regression model, we find that a 1% decrease in the corruption index CPI level increases the GDP growth rate by approximately 2,005%. The analysis also revealed that there is a negative relationship between the country rank and the economic growth. Finally, the results suggest that more economic freedom, social and political stability lead to less corruption.

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 Good Governance and Economic Growth in South European Countries

2021 ◽  
Vol 13 (2) ◽  
pp. 26
Author(s):  
Dimitra Mitsi
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Good Governance ◽  
Trade Openness ◽  
Political Stability ◽  
Foreign Direct Investments ◽  
Institutional Variables ◽  
Regulatory Quality ◽  
Many Sources

Economic growth is a prerequisite for economic development. However, there is no &ldquo;recipe&rdquo; for countries to create an environment of prosperity and to achieve high rates of economic growth. Many researchers have examined the drivers of economic growth and find that economic growth depends on many economic and institutional variables. In this context, the main objective of this paper is to examine the role of good governance on economic growth in piicgs countries (Portugal, Ireland, Italy, Cyprus, Greece, and Spain). The database was collected from many sources and the empirical analysis is based on a 2SLS (two-stage least squares) technique. In our empirical results, we find that trade openness, gross capital formation, inflation, political stability, rule of law, debt rule, budget balanced rule, and the combination between debt rule/budget balanced rule with political stability and combination between debt rule/budget balanced rule with rule of law are significant drivers of economic growth in piicgs countries while foreign direct investments, government effectiveness, voice and accountability, regulatory quality, fiscal rule index and expenditure rule are insignificant. However, the results may be different if we use other sample groups and/or different periods.

scholarly journals How Good Government Governance Affect the Economic Growth? An Investigation on Selected Country around the World

2021 ◽  
pp. 93-98
Author(s):  
Syaharani Noer Fathia
Keyword(s):  
Economic Growth ◽  
Good Governance ◽  
Random Effect ◽  
Likelihood Estimation ◽  
Political Stability ◽  
Governance Indicators ◽  
Data Framework ◽  
Good Government ◽  
Negative Effect ◽  
Government Governance

Good governance has become an important factor in economic growth. Good governance will become one of the UN's Millennium Development Goals. This study aims to show whether indicators of good government governance can affect the economic growth of a country so that the country can control economic growth through its governance. The Economic Growth and The governance indicators which drawn by Worldwide Governance Indicators for 2015-2019. The study covered 73 countries and it adopted the panel data framework the fixed effect, the random effect and the maximum likelihood estimation techniques for the analyses. The results shows that the voice and accountability have negative effect. Variable government effectiveness and rule of law have positive effect. Meanwhile, the political stability, regulatory quality, and control of corruption variables had no effect on economic growth. The study suggest for further researchers to provide other variables and expand research time.

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.

Analisis Indikator Makro Ekonomi Terhadap Tingkat Kemiskinan di Provinsi Sumatera Barat

2021 ◽  
Vol 5 (1) ◽  
pp. 1-7
Author(s):  
Cempaka Rizki Ambar Sari ◽  
Dela Resina ◽  
Neng Kamarni
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Poverty Rate ◽  
Variable Rate ◽  
Poverty Level ◽  
Economic Growth Rate ◽  
West Sumatra ◽  
Macroeconomic Indicators ◽  
Interesting Discussion

Poverty is a problem of economic development which is always an interesting discussion. Poverty has an impact on socio-economic burdens, increases in crime, decreases the quality of life, and hinders the creation of superior human resources. The objectives of this study were to 1) analyze the concept and development of poverty in West Sumatra Province; and 2) to analyze the effect of macroeconomic indicators on poverty in West Sumatra Province. The macroeconomic indicators used are Economic Growth Rate based on Gross Regional Domestic Product (GRDP) and Human Development Index (HDI). The analytical tool used is multiple linear regression which includes data from 19 districts and cities in West Sumatra Province during the period 2015-2019. From the results of this study, it was found that in general the poverty rate in West Sumatra Province from 2015-2019 continued to decline. The variable rate of economic growth has a positive relationship with the level of poverty in West Sumatra Province. Meanwhile, the HDI variable has a significant effect on the poverty level and has a negative relationship.

scholarly journals On The Relation Between Regulation And Economic Growth

2012 ◽  
Vol 11 (2) ◽  
pp. 147
Author(s):  
Atul A. Dar ◽  
Sal AmirKhalkhali
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Developed Economies ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
The World Bank ◽  
Quality Scale ◽  
Positive Growth ◽  
Accounting Model

This paper examines the relation between regulation and economic performance in the context of 23 developed economies. We apply a generalisation of the growth accounting model popularized by Solow to data over the 2002-2008 period. In the model, we assume that regulatory quality impacts on growth via its impact on total factor productivity growth. We look at three measures of regulatory quality, all of which are based on the set of governance indicators developed by the World Bank. The model is estimated using a fixed effects as well as a random effects estimation strategy. Our findings do lend support for the view that the better the quality of regulation, the higher rate of economic growth, but find no support for the view that the strength of the positive growth impact is stronger for countries that rank relatively lower on the regulatory quality scale.

Do Governance Indicators Matter for Economic Growth? The Case of Sri Lanka

2019 ◽  
Vol 65 (2) ◽  
pp. 430-450
Author(s):  
T. Vinayagathasan ◽  
R. Ramesh
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Political Stability ◽  
Estimation Methods ◽  
Series Data ◽  
Scatter Plot ◽  
Correlation Test ◽  
Governance Indicators ◽  
Long Run ◽  
Traditional Approaches

This study attempts to identify the impact of governance indicators on economic growth using time series data for Sri Lanka from 1996 to 2016 published by the World Bank. The Phillips–Perron (PP) unit root test confirmed that all the variables are integrated in order one and suggested the use of cointegration technique to identify the long-run relationship between the variables. All the lag length selection criteria except Schwarz Information Criterion (SIC) advocated the use of one lag as an optimal lag length for this study. Johansen cointegration method detected three cointegrating relationships among the variables. Further, this technique identified a significant and positive relationship between government effectiveness (GE) and gross domestic product per capita (GDPPC) in the long run. This result is in contrast to all the three traditional approaches, such as correlation test, scatter plot and ordinary least squared (OLS), in which they do not identify any clear relationship between them. Moreover, Johansen test found a negative and statistically significant link between political stability and absence of violence (PSAV) and GDPPC in the long run, while all three traditional approaches identified a positive correlation between them. The findings of this study indicate a negative association between rule of law (ROL) and GDPPC in the long run, which coincides with theory, some of the empirical studies and with findings of all three traditional approaches used in this study. Even though OLS did not identify a significant relationship between control of corruption (COC) and GDPPC, Johansen test, correlation test and scatter plot detected a significant and negative correlation between them in the long run as expected by the theoretical evidence. Granger’s causality test identified the bidirectional causality between GE and ROL and unidirectional causality between ROL and COC. However, relationship between governance variables and GDPPC vary based on the estimation methods. These findings suggest that the policymakers need to take considerable attention on the above when they formulate and implement policy to improve GE.

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.

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