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Geography and governance: Does space matter?

Harry Seldadyo, J.Paul Elhorst and Jakob de Haan ()

Papers in Regional Science, 2010, vol. 89, issue 3, 625-640

Abstract: Abstract Studies on governance generally ignore spatial dependence among the observations. Employing spatial econometric methods, we find that governance in one country exhibits a positive relationship with governance in neighbouring countries. Consequently, a change in a single explanatory variable in a particular country not only affects the level of governance in that country itself, but also in neighbouring countries. Using maximum likelihood function values and Bayesian posterior model probabilities, we also find that the spatial arrangement of the countries in the sample is best described by a spatial weights matrix based on the 10 nearest neighbours of every country in the sample. Resumen Los estudios sobre gobernanza generalmente ignoran la dependencia espacial entre las observaciones. Mediante métodos econométricos espaciales encontramos que la gobernanza en un país muestra una relación positiva con la gobernanza en países vecinos. En consecuencia, un cambio en una única variable explicativa en un país en particular no solo afecta al nivel de gobernanza en dicho país, sino también en los países vecinos. Mediante el uso de valores de funciones de máxima verosimilitud y probabilidades de modelos posteriores Bayesianos, encontramos también que la mejor manera de describir la disposición espacial de los países de la muestra es hablando de una matriz ponderada espacial basada en los 10 vecinos más cercanos de cada país de la muestra.

Date: 2010
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Handle: RePEc:bla:presci:v:89:y:2010:i:3:p:625-640