The Rule of Law in the ESG Framework in the World Economy

Angelo Leogrande

MPRA Paper from University Library of Munich, Germany

Abstract: In this article, I have estimated the Rule of Law for 193 countries using data from the Environment Social and Governance-ESG database of World Bank. I have used different econometric techniques to estimate the value of “Rule of Law” i.e.: Panel Data with Fixed Effects, Panel Data with Random Effects, Pooled OLS. I found that Rule of Law is positively associated, among others to “Regulatory Quality” and “Control of Corruption” and negatively associated among others to, “Access to Electricity” and “Prevalence of Overweight”. I have performed a cluster analysis with the k-Mean algorithm optimized with the Elbow Method and I find the presence of four clusters. Finally, I present a confrontation among eight different machine-learning algorithms to predict the level of Rule of Law. I find that Linear Regression is the best predictor according to MAE, MSE, RMSE and R-squared.

Keywords: Analysis of Collective Decision-Making; General; Political Processes: Rent-Seeking; Lobbying; Elections; Legislatures; and Voting Behaviour; Bureaucracy; Administrative Processes in Public Organizations; Corruption; Positive Analysis of Policy Formulation; and Implementation. (search for similar items in EconPapers)
JEL-codes: D7 D70 D71 D72 D73 D78 (search for similar items in EconPapers)
Date: 2023-02-11
New Economics Papers: this item is included in nep-big and nep-fmk
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:116293

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