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Good Governance And Economic Growth: An Investigation Of Thailand And Selected Asian Countries

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  • Paitoon Kraipornsak

    (Chulalongkorn University, Thailand)

Abstract

Good governance has been placed an important factor in economic development especially in developing countries. Consequently, good governance is set to be one of the development goals in the millennium of the United Nations. The paper aims at comparatively investigating level of governance of Thailand and few other Asian countries. The study examined Worldwide Governance Indicator (WGI) comparatively among selected Asian countries. High percentile ranks of the WGI were found in advanced economies. Framework of production function is used to quantitatively analyze effect of being good governance on income per head. The production function was estimated for 16 Asian countries during 1996 – 2016 using the fixed effect model indicated by the Hausman Test. The result showed that apart from capital per head and total factor productivity growth, the good governance can additionally be a significant factor that contributes to growth of income per head. A higher composite governance index by 1 percent from the past year can help raise country’s income per head by US $31.34 or 0.54 percent per year. For Asian developing countries, the good governance is therefore a crucial factor that can contribute significantly to their growth.

Suggested Citation

  • Paitoon Kraipornsak, 2018. "Good Governance And Economic Growth: An Investigation Of Thailand And Selected Asian Countries," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 6(1), pages 93-106.
    • Handle: RePEc:ejn:ejefjr:v:6:y:2018:i:1:p:93-106
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    1. Avinash Dixit, 2009. "Governance Institutions and Economic Activity," American Economic Review, American Economic Association, vol. 99(1), pages 5-24, March.
    2. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "Governance Matters VI: Aggregate and Individual Governance Indicators, 1996-2006," Policy Research Working Paper Series 4280, The World Bank.
    3. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    4. Quibria, M.G., 2014. "Governance and Developing Asia: Concepts, Measurements, Determinants, and Paradoxes," ADB Economics Working Paper Series 388, Asian Development Bank.
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    Cited by:

    1. McCauley, Darren & Pettigrew, Kerry, 2023. "Building a just transition in asia-pacific: Four strategies for reducing fossil fuel dependence and investing in clean energy," Energy Policy, Elsevier, vol. 183(C).
    2. Syeda Tayyaba Ijaz & Sumayya Chughtai, 2022. "The Impact of Financial, Economic and Environmental Factors on Energy Efficiency, Intensity, and Dependence: The Moderating Role of Governance and Institutional Quality," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 15-31, July.
    3. Paitoon Kraipornsak, 2020. "The Different Structure of Sources of Growth between the Developed and the Developing Asia and the Pacific Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(1), pages 22-34, January.
    4. McCauley, Darren & Pettigrew, Kerry A. & Todd, Iain & Milchram, Christine, 2023. "Leaders and laggards in the pursuit of an EU just transition," Ecological Economics, Elsevier, vol. 205(C).
    5. Leogrande, Angelo, 2023. "The Rule of Law in the ESG Framework in the World Economy," MPRA Paper 116293, University Library of Munich, Germany.

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