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Does governance explain growth? An empirical analysis on African countries
Dalarna University, School of Culture and Society, Economics. (Studies of Business and Economic Dynamics)ORCID iD: 0000-0002-9748-9572
Dalarna University, School of Culture and Society, Economics. (Studies of Business and Economic Dynamics)ORCID iD: 0009-0001-1047-2808
Dalarna University, School of Culture and Society, Economics. (Studies of Business and Economic Dynamics)ORCID iD: 0000-0001-8599-7185
2024 (English)In: Good Governance and Economic Growth: Complimentary or Problematic? / [ed] Ramesh Chandra Das, Routledge, 2024, 1Chapter in book (Refereed)
Sustainable development
SDG 8: Decent work and economic growth, SDG 4: Quality education, SDG 10: Reduced inequalities, SDG 16: Peace, justice and strong institutions, SDG 17: Partnerships for the goals
Abstract [en]

In the discourse of development economics, it is argued that the quality of governance can play a central role for the economic growth. Literature in this area is extensive and many scholars have deeply investigated the importance of governance to explain why most of the developing countries have a weak economic performance. The present work investigates the impact of governance quality on per capita GDP (gross domestic product) growth for 45 African countries using World Bank data. Governance is expressed by six different proxy indicators called World Governance Indicators (WGI). In addition to Governance Indicators, other variables such as measures of primary school enrolment, degree of openness to trade, capital, foreign direct investment (FDI), and government expenditure as the control variables are used for a relatively long period of time, 2002 to 2021. We apply Generalized Method of Moments (GMM) as econometric method to estimate our model. The findings suggest that government effectiveness, rule of law, and regulatory quality and corruption are governance measures that influence economic growth. 

Place, publisher, year, edition, pages
Routledge, 2024, 1.
Keywords [en]
Governance, Economic growth, African countries, World Governance Indicators (WGI)
National Category
Economics
Research subject
Forskargrupp/Seminariegrupp, Näringsliv och samhälle
Identifiers
URN: urn:nbn:se:du-48728DOI: 10.4324/9781003530688Scopus ID: 2-s2.0-85207533924ISBN: 9781003530688 (electronic)OAI: oai:DiVA.org:du-48728DiVA, id: diva2:1869011
Available from: 2024-06-12 Created: 2024-06-12 Last updated: 2025-06-05Bibliographically approved

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Publisher's full textScopushttps://www.routledge.com/Good-Governance-and-Economic-Growth-Complimentary-or-Problematic/Das/p/book/9781032870519

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Cialani, CatiaChala, Alemu TuluMortazavi, Reza

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CiteExportLink to record
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