Macroeconomics and Governance

Gordon de Brouwer
Additional contact information
Gordon de Brouwer: Treasury, Government of Australia

No 2003-04, Treasury Working Papers from The Treasury, Australian Government

Abstract: In recent years there has been a resurgence of interest in the impact of institutions on economic growth and development. Governance, both at the economy-wide and firm-specific level, has emerged as one of the central aspects of institutional structure and design. The paper argues that the quality of governance matters to macroeconomic performance because it provides a key foundation for the equitable and efficient allocation of resources, including capital. Better governance tends to be associated with deeper economic and financial development, with the causation running from better governance to higher income rather than the other way round. Better governance also reduces the risk of macroeconomic instability, by containing the types of shocks to which an economy is exposed and by making it easier for private and official decision-makers to deal with negative shocks when they occur. This matters for all economies, be they developing, emerging, transition, or industrialised. This paper sets out some definitions of governance, at both the economy-wide and firm-specific level, and explores what is meant by 'good governance'. It sets out some indicators of governance for selected Asia-Pacific economies. It explores some of the ways that governance can matter for macroeconomic growth, development and stability.

Keywords: governance; institutions; economic development; macroeconomic stability; East Asia (search for similar items in EconPapers)
JEL-codes: E6 G34 G38 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2003-12, Revised 2003-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://archive.treasury.gov.au/documents/773/PDF/M ... and%20Governance.pdf First version, 2003 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tsy:wpaper:wpaper_tsy_wp_2003_4

Access Statistics for this paper

More papers in Treasury Working Papers from The Treasury, Australian Government Contact information at EDIRC.
Bibliographic data for series maintained by The Treasury (Commonwealth of Australia) ().