Governance, Institutions, and Economic Development

Rashid Nikzad
Additional contact information
Rashid Nikzad: Department of Economics, Carleton University, Ottawa, Canada

International Journal of Innovation and Economic Development, 2021, vol. 7, issue 4, 7-22

Abstract: Literature suggests a positive relationship between a country’s social and economic development, good governance, and institutions. However, there is not a consensus on the nature of this relationship and the aspects of the governance that are most important for economic development. This paper addresses this question by empirically examining the relationship between a country’s economic performance and governance indicators in 1996-2019. Economic performance indicators include GDP per capita and GDP. Governance indicators are adopted from the World Bank’s Worldwide Governance Indicators. The paper shows that while most governance indicators have a positive and statistically significant impact on economic growth, their importance varies with the income level of the country. As such, improvements in different aspects of governance become more effective for economic growth as countries move through different stages of economic development.

Keywords: Economic Development; Institutions; Governance. (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://researchleap.com/wp-content/uploads/2021/1 ... omic-Development.pdf (application/pdf)
https://researchleap.com/governance-institutions-and-economic-development/ (text/html)

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:mgs:ijoied:v:7:y:2021:i:4:p:7-22

DOI: 10.18775/ijied.1849-7551-7020.2015.74.2001

Access Statistics for this article

More articles in International Journal of Innovation and Economic Development from Inovatus Services Ltd.
Bibliographic data for series maintained by Bojan Obrenovic ().