Underlying the Relationship Between Governance and Economic Growth in Developed Countries
Almalki Sultan Musaad O (),
Bashir Muhammad and
Additional contact information
Zhang Zhuo: Nanjing University of Aeronautics and Astronautics
Almalki Sultan Musaad O: Nanjing University of Aeronautics and Astronautics
Bashir Muhammad: Henan University
Sher Khan: Henan University
Journal of the Knowledge Economy, 2021, vol. 12, issue 3, No 15, 1314-1330
Abstract This paper uses panel data from 31 developed countries over the period 2002 to 2018 by applying a generalized method of moments (GMM) and system generalized method of moments (Sys GMM), pooled OLS, fixed effect, and random effect to look at the effect of six indicators of governance on economic growth. The study finds direct significant effect of rule of law, control of corruption, and voice and accountability on economic growth of developed countries which indicate that developed countries’ economy increases due to increase in rule of law or control of corruption or voice and accountability. The study also finds indirect significant effect of government effectiveness, political stability, and regulatory quality on economic growth which imply decline in the economy of developed countries due to 1% increase in government effectiveness, political stability, and regulatory quality. The results of this study apparently demonstrate the importance of governance indicators to get better the developed countries’ economy.
Keywords: Governance; Panel data; Economic growth; Dynamic model (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s13132-020-00658-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:jknowl:v:12:y:2021:i:3:d:10.1007_s13132-020-00658-w
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of the Knowledge Economy is currently edited by Elias G. Carayannis
More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().