Do Governance Indicators Explain Development Performance? A Cross-Country Analysis

Han, Xuehui; Khan, Haider A.; Zhuang, Juzhong

doi:10.2139/ssrn.2558894

Cited by 66 publications

(52 citation statements)

References 23 publications

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“…Political instability, corruption, red tape, and an inefficient judicial system are shown to be detrimental to growth (see Hall and Jones (1999); Mauro (1995), and Aixala and Fabro (2008)). There is a positive correlation with a country's initial level of income and good initial governance (Han, Khan and Zhuang (2014)).…”

Section: Literature Reviewmentioning

confidence: 99%

Who did it? A European Detective Story Was it Real, Financial, Monetary and/or Institutional: Tracking Growth in the Euro Area with an Atheoretical Tool

Comunale

Mongelli

2020

SSRN Journal

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During the past thirty years, euro area countries have undergone significant changes and experienced diverse shocks. We aim to investigate which variables have consistently supported growth in this tumultuous period. The paper unfolds in three parts. First, we assemble a set of 35 real, financial, monetary and institutional variables for all euro area countries covering the period between 1990Q1 and 2016Q4. Second, using the Weighted-Average Least Squares (WALS) method, as well as other techniques, we gather clues about which variables to select. Third, we quantify the impact of various determinants of growth in the short and long runs. Our main finding is the positive and robust role of institutional reforms on long-term growth for all countries in the sample. An improvement in competitiveness matters for growth in the overall euro area in the long run as well as a decline in sovereign and systemic stress. The debt over GDP negatively influences growth for the periphery, but only in the short run. Property and equity prices have a significant impact only in the short run, whereas the loans to NFCs positively affect the core euro area. An increase in global GDP also supports growth.

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Section: Literature Reviewmentioning

confidence: 99%

Who did it? A European Detective Story Was it Real, Financial, Monetary and/or Institutional: Tracking Growth in the Euro Area with an Atheoretical Tool

Comunale

Mongelli

2020

SSRN Journal

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“…Studies broadly examine the connections between governance, economic growth, and inequality (Zhuang, de Dios, and Lagman‐Martin ) and report a positive and robust relationship between democratic governance variables, economic growth, and income levels (Gerring et al ; Persson and Tabellini ). Han, Khan, and Zhuang () find a positive relationship such that government effectiveness, political stability, control of corruption, and regulatory quality have a significantly greater impact on growth performance compared with voice and accountability and rule of law. This study reports that governance matters for development, and that better governance correlates with faster growth and higher income levels.…”

Section: Trade Governance: Literature Reviewmentioning

confidence: 99%

Twenty‐first‐century Trade Governance: Findings From the Commonwealth Countries

Khorana

Martínez‐Zarzoso

2019

Contemporary Economic Policy

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This paper focuses on twenty‐first‐century‐trade governance patterns within the Commonwealth (CW) countries. It uses an augmented gravity model to examine the role of governance in influencing trade and investment flows, and whether enhanced trade governance within the CW countries could potentially foster trade gains, on a both intra‐ and extra‐CW basis. Results show a 10% reduction in the costs incurred for a good to exit a country can increase intra‐CW exports by 5%. Second, contract enforcement is more efficient among CW members, and requires 20% less time compared to the world average. Third, every 1 percentage point improvement in government effectiveness triggers an increase in exports from CW, at 3.4%, compared to the rest of the world, at 2.4%. Finally, trade between CW members is three times higher when they belong to an existing regional trade agreement. (JEL F10, 011, F13)

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“…However, no results were found addressing this relationship specifically. Government effectiveness was related to several other factors, such as environment (Sofia, 2019), finance (Olubiyi, 2013;Pérez-Cárceles & Gómez-García, 2019;Ibrahim, 2019), socioeconomic indicators (Marino et al, 2016), entrepreneurship (Friedman, 2011;Friedman, 2014), health (Hu & Mendoza, 2014;Batniji, 2014;Ciccone, Vian, Maurer & Bradley, 2014) and GDP (Han, Khan & Zhuang, 2014). Sofia (2019) analyzed the relationship between governance and environmental performance and concluded that governance measures, including government effectiveness, have no effect on environmental practices.…”

Section: Government Effectiveness and Investmentsmentioning

confidence: 99%

Governmental Effectiveness: Analysis of State-Owned Enterprises Investments

Júnior

Damasceno

Lôbo

2019

CGG

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Objective: analyze the relationship between the effectiveness of the government and the investments made by state-owned enterprises. Method: this study makes use of a quasi-experiment using the Difference-inDifferences technique. The variables used to analyze the investments were: Increase in Investments, Number of Employees, Intangible Assets, Short-Term Investment and Return on Investments. Originality/Relevance: little attention was paid to comparisons between countries regarding government effectiveness, and no studies addressing the relationship between government effectiveness and state-owned enterprise investments were found. Results: companies with the government as the majority shareholder only invest more in relation to private companies when they are in environments with low government effectiveness. Theoretical/Methodological contributions: in theoretical terms, the research addressed a new perspective that may be crucial in explaining state-owned enterprise investments: the effectiveness of government. The main methodological contribution was the use of a comparative study on government effectiveness (in terms of using multiple measures and the analysis of many countries).

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Do Governance Indicators Explain Development Performance? A Cross-Country Analysis

Cited by 66 publications

References 23 publications

Who did it? A European Detective Story Was it Real, Financial, Monetary and/or Institutional: Tracking Growth in the Euro Area with an Atheoretical Tool

Who did it? A European Detective Story Was it Real, Financial, Monetary and/or Institutional: Tracking Growth in the Euro Area with an Atheoretical Tool

Twenty‐first‐century Trade Governance: Findings From the Commonwealth Countries

Governmental Effectiveness: Analysis of State-Owned Enterprises Investments

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