Does Governance Cause Growth? Evidence from China

Ross Wilson ()
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Ross Wilson: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden, https://sites.google.com/site/nekrwl/home

No 2015:14, Working Papers from Lund University, Department of Economics

Abstract: This study uses heterogeneous panel Granger causality tests to investigate the causal relationships between quality of governance and economic growth at the provincial level in China during the reform era. I find a significant and positive effect of economic growth on subsequent quality of governance, largely driven by growth in the secondary sector, but no significant effect of quality of governance on economic growth. These findings suggest that improvements in formal governance have not been a key factor in China’s rapid growth, and support the proposition that governance reforms are often a consequence, rather than a cause, of economic growth.

Keywords: Asia; China; Quality of Governance; Economic Growth (search for similar items in EconPapers)
JEL-codes: O11 O17 O43 O53 R11 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2015-04-30
New Economics Papers: this item is included in nep-cna, nep-gro and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lunewp:2015_014

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