Estimating the Quality of Economic Governance: A Cross-Country Analysis

Sudip Ranjan Basu

Econometrics from University Library of Munich, Germany

Abstract: This paper proposes a methodology to combine different dimensions of economic governance into a combined index. The quality of economic governance index (QEGI) is estimated as the weighted average of principal components of the standardised economic governance indicators, where weights are variances of successive principal components. The paper reports the QEGI for 71 developing and transition economies in 1998-2000. The evidence from a simple scatter diagram and a cross country regression analysis indicates that the better economic governance positively affects the economic performance (e.g., rise in per capita income, decline in poverty level, etc.) for sample of countries in our analysis.

Keywords: Economic governance; Economic performance; Cross-country analysis; principal component. (search for similar items in EconPapers)
JEL-codes: C1 N4 O1 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2005-09-08
New Economics Papers: this item is included in nep-afr and nep-cwa
Note: Type of Document - pdf; pages: 31. pdf format
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/em/papers/0509/0509012.pdf (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:wpa:wuwpem:0509012

Access Statistics for this paper

More papers in Econometrics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).