Governance and growth: A panel VAR approach

Guilherme Amorim () and Marcelo Silva
Additional contact information
Guilherme Amorim: University of Illinois at Urbana-Champaign

Economics Bulletin, 2023, vol. 43, issue 4, 1896 - 1907

Abstract: In this paper, we explore the dynamic relationship between economic growth and quality of governance across a wide sample of countries. Using a panel vector autoregression (VAR) approach, we show that shocks to governance quality exert a positive and significant impact on economic growth, one that is sustained for more than ten years after the initial shock. Therefore, our results support the institutional view of economic growth, with better governance fostering higher growth. We also present evidence supporting the idea that higher growth leads to better institutions.

Keywords: Governance; Institutions; Growth; Cross-Country; Panel VAR. (search for similar items in EconPapers)
JEL-codes: C5 O4 (search for similar items in EconPapers)
Date: 2023-12-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2023/Volume43/EB-23-V43-I4-P163.pdf (application/pdf)

Related works:
Working Paper: GOVERNANCE AND GROWTH: A PANEL VAR APPROACH (2018)
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:ebl:ecbull:eb-23-00205

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().