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Geography and governance: Does space matter?

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  • Harry Seldadyo
  • J. Paul Elhorst
  • Jakob De Haan

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. Copyright (c) 2010 the author(s). Journal compilation (c) 2010 RSAI.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Papers in Regional Science.

Volume (Year): 89 (2010)
Issue (Month): 3 (08)
Pages: 625-640

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

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190

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Cited by:
  1. Ahmad, Mahyudin & Hall, Stephen G., 2012. "Institutions-growth spatial dependence: An empirical test," MPRA Paper 42360, University Library of Munich, Germany.
  2. Roberto Ezcurra & Vicente Rios, 2013. "Is there cross-country convergence in government quality? A non-parametric analysis," Economics Bulletin, AccessEcon, vol. 33(4), pages 2661-2671.
  3. Marek Hanusch, 2013. "Islam and democracy: a response," Public Choice, Springer, Springer, vol. 154(3), pages 315-321, March.
  4. Kyriacou, Andreas P., 2012. "Beliefs about the determinants of success and employment protection," Economics Letters, Elsevier, Elsevier, vol. 116(1), pages 31-33.
  5. Kelejian, Harry H. & Murrell, Peter & Shepotylo, Oleksandr, 2013. "Spatial spillovers in the development of institutions," Journal of Development Economics, Elsevier, Elsevier, vol. 101(C), pages 297-315.
  6. Ahmad, Mahyudin & Hall, Stephen G., 2012. "Institutions and growth: Testing the spatial effect using weight matrix based on the institutional distance concept," MPRA Paper 42294, University Library of Munich, Germany.
  7. Hermann Pythagore Pierre Donfouet & P. Wilner Jeanty & Eric Malin, 2013. "A Spatial Dynamic Panel Analysis of Corruption," Economics Working Paper Archive (University of Rennes 1 & University of Caen), Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS 201324, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  8. Faber, Gerrit & Gerritse, Michiel, 2012. "Foreign determinants of local institutions: Spatial dependence and openness," European Journal of Political Economy, Elsevier, Elsevier, vol. 28(1), pages 54-63.

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