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The Strength of Sound Corporate Governance on Economic Growth in an Emerging Market Context

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  • Alexander Maune

    (CEMS, University of South Africa, South Africa.)

Abstract

The study examined the impact of sound corporate governance on economic growth in an emerging market, Zimbabwe, using an econometric model. A multiple linear regression analysis was employed to examine the relationship. Secondary data for the period from 1968 to 2015 was collected from World Bank`s Worldwide Governance and World Development Indicators databases. It was found that sound corporate governance is significantly related to economic growth in an emerging market, Zimbabwe, in a positive and negative manner with a p-value of 0.000023235 at 5% level of confidence. On one hand, control of corruption is negatively significantly related to economic growth and on the other hand political stability and absence of violence/terrorism positively significantly related to economic growth. Government effectiveness, regulatory quality, rule of law and voice and accountability are insignificant in influencing economic growth in Zimbabwe at 5% level of significance. The findings from this article will assist policy formulation, policy implementation and future research. This article, however, is of great importance to government, private sector and the academia.

Suggested Citation

  • Alexander Maune, 2017. "The Strength of Sound Corporate Governance on Economic Growth in an Emerging Market Context," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 6-13.
    • Handle: RePEc:eco:journ1:2017-05-2
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    References listed on IDEAS

    as
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    Cited by:

    1. Joseph ZUVA & Tranos ZUVA & Pinias CHIKUVADZE, 2023. "Interrogating Organisational Deviance Through A Corporate Governance Lens," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(3), pages 33-43, September.
    2. Tassisius Muzivi, 2022. "An Effective and Prompt Assessment of Good Corporate Governance on Public Sector Entities- Evaluation of Ideal Best Practices," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(1), pages 690-698, January.

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    More about this item

    Keywords

    Corporate Governance; Economic Growth; Economic Development; Gross Domestic Product; Investor Protection; Emerging Market.;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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