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 “recipe” 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 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 Comparing Quality of Institutions with Happiness of Asian People

2021 ◽  
Vol 39 (3) ◽  
Author(s):  
Noman Arshed ◽  
Arslan Arif ◽  
Dr Rana Zamin Abbas ◽  
Kamran Hameed
Keyword(s):  
Rule Of Law ◽  
Good Governance ◽  
Trade Openness ◽  
Asian Countries ◽  
Multidisciplinary Research ◽  
Regulatory Quality ◽  
Different Dimensions ◽  
Asian People

The pursuit of happiness is the major goal of humanity. Multidisciplinary research efforts had tried to find its determinants. This study investigates the role of different dimensions of institutional quality of happiness for 33 Asian countries. Quality of institutes helps people feel a sense of control and achievement, which may lead to perceived wellbeing. This study has used a panel FGLS model. The results confirmed that good governance, money, openness, and employment have a significant effect on happiness. It is urged that improvement in indicators like regulatory quality and rule of law to promote employment and trade openness which may help in national happiness.

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.

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 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 Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument Variable

2016 ◽  
Vol 17 (1) ◽  
pp. 84
Author(s):  
Albertus Girik Allo
Keyword(s):  
Economic Growth ◽  
Estimation Method ◽  
Political Stability ◽  
Financial Sector ◽  
Data Set ◽  
Institutional Variables ◽  
The World Bank ◽  
Control Of Corruption

Institution has been investigated having indirect role on economic growth. This paper aims to evaluate whether the quality of institution matters for economic growth. By applying institution as instrumental variable at Foreign Direct Investment (FDI), quality of institution significantly influence economic growth. This study applies two set of data period, namely 1985-2013 and 2000-2013, available online in the World Bank (WB). The first data set, 1985-2013 is used to estimate the role of financial sector on economic growth, focuses on 67 countries. The second data set, 2000-2013 determine the role of institution on financial sector and economic growth by applying 2SLS estimation method. We define institutional variables as set of indicators: Control of Corruption, Political Stability and Absence of Violence, and Voice and Accountability provide declining impact of FDI to economic growth.

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 Governance in Africa

2011 ◽  
Author(s):  
Bruce Baker
Keyword(s):  
Rule Of Law ◽  
Good Governance ◽  
Political Stability ◽  
Power Relationships ◽  
Welfare Programs ◽  
Social Functions ◽  
State Institutions ◽  
Cultural Organizations ◽  
Regulatory Quality ◽  
Key Indicators

Definitions of governance in Africa in the early 1990s emphasized public sector management, efficiency, and organizational and technical questions. This narrowed governance to the conduct of state institutions, and it depoliticized governance. Later definitions added normative overtones and spoke increasingly of “good” governance. Over time, key indicators have come to focus on government effectiveness, political stability, voice and accountability, rule of law, control of corruption, and regulatory quality. Governance, however, is broader than “government” or the relationship between the state (and its leadership) and society. It relates to all power relationships, including nonstate, substate, and suprastate relations. Essentially, governance concerns the exercise of authority. It may be through structures (e.g., rule systems of governments) or social functions and processes (e.g., by nonstate entities). Persons may have authority because of who they are (their formal role is authoritative, such as government officers distributing grants according to rules); because of what they do (their informal action is authoritative, such as patrons distributing gifts as they choose); or a mixture of the two, where they use formal authority in informal ways (e.g., government officers distributing state resources to clients, supporters, or family members). In other words, governance entails overlapping spheres of authority, each with a set of norms, principles, and decision-making procedures that control how power is allocated. Those exercising governance may be politicians, civic institutions, media, religious and cultural organizations, nongovernmental organizations (NGOs), as well as government agencies. With the widely held recognition by the late 1980s that many of Africa’s development problems were due to poor governance, the focus of national and donor programs turned to seeking to achieve good governance, which is understood to be the allocation and management of resources to respond to collective problems. It is characterized by participation, transparency, accountability, rule of law, effectiveness, and equity. Good governance is critical for Africa for two principal reasons: economic and social. Economically, it lies at the heart of economic development, helping to harness and develop weak economies. It promotes economic efficiency through equitable rules, by promoting fair and well functioning markets, and it curtails corruption and ensures the fair delivery of services. Socially, it prevents exclusion, promotes peace, and encourages welfare programs.

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 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.

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