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The Worldwide Governance Indicators: Six, One, or None?

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  • Laura Langbein
  • Stephen Knack

Abstract

Aggregate indexes of the quality of governance, covering large samples of countries, have become popular in comparative political analysis. Few studies examine the validity or reliability of these indexes. To partially fill this gap, this study uses factor, confirmatory factor and path analysis to test both measurement and causal models of the six Worldwide Governance indicators. They purportedly measure distinct concepts of control of corruption, rule of law, government effectiveness, rule quality, political stability, and voice and accountability. Rather than distinguishing among aspects of the quality of governance, we find that they appear to be measuring the same broad concept.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 46 (2010)
Issue (Month): 2 ()
Pages: 350-370

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Handle: RePEc:taf:jdevst:v:46:y:2010:i:2:p:350-370

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Cited by:
  1. Christopher Marcoux & Johannes Urpelainen, 2012. "Capacity, not constraints: A theory of North-South regulatory cooperation," The Review of International Organizations, Springer, vol. 7(4), pages 399-424, December.
  2. Bang, James T. & Mitra, Aniruddha, 2011. "Brain drain and institutions of governance: Educational attainment of immigrants to the US 1988-1998," Economic Systems, Elsevier, vol. 35(3), pages 335-354, September.
  3. Law, Siong Hook & Azman-Saini, W.N.W. & Ibrahim, Mansor H., 2013. "Institutional quality thresholds and the finance – Growth nexus," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 5373-5381.
  4. Siong Law & W. Azman-Saini, 2012. "Institutional quality, governance, and financial development," Economics of Governance, Springer, vol. 13(3), pages 217-236, September.
  5. Gaygısız, Esma, 2013. "How are cultural dimensions and governance quality related to socioeconomic development?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 170-179.
  6. Mitra, Aniruddha & Bang, James T. & Wunnava, Phanindra V., 2011. "Financial Liberalization and the Brain Drain: A Panel Data Analysis," IZA Discussion Papers 5953, Institute for the Study of Labor (IZA).
  7. Thibaut Dort & Pierre-Guillaume Méon & Khalid Sekkat, 2013. "Does investment spur growth everywhere? Not where institutions are weak," Working Papers CEB 13-030, ULB -- Universite Libre de Bruxelles.
  8. Knoll, Martin & Zloczysti, Petra, 2012. "The Good Governance Indicators of the Millennium Challenge Account: How Many Dimensions are Really Being Measured?," World Development, Elsevier, vol. 40(5), pages 900-915.
  9. Lebovic, James H., 2014. "The Millennium Challenge Corporation: Organizational Constraints on US Foreign Aid, 2004–11," World Development, Elsevier, vol. 58(C), pages 116-129.
  10. de Janvry, Alain & Dethier, Jean-Jacques, 2012. "The World Bank and governance : the Bank's efforts to help developing countries build state capacity," Policy Research Working Paper Series 6275, The World Bank.
  11. Law, Siong Hook & Lim, Thong Cheen & Ismail, Normaz Wana, 2013. "Institutions and economic development: A Granger causality analysis of panel data evidence," Economic Systems, Elsevier, vol. 37(4), pages 610-624.
  12. Knoll, Martin, 2013. "The heavily indebted poor countries and the multilateral debt relief initiative: A test case for the validity of the debt overhang hypothesis," Discussion Papers 2013/11, Free University Berlin, School of Business & Economics.
  13. Clarke, George, 2012. "Manufacturing firms in Africa: Some stylized facts about wages and productivity," MPRA Paper 36122, University Library of Munich, Germany.
  14. Sen, Kunal, 2013. "Governance and Development Outcomes in Asia," ADB Economics Working Paper Series 384, Asian Development Bank.
  15. Wahl, Fabian, 2012. "Why it matters what people think: Beliefs, legal origins and the deep roots of trust," FZID Discussion Papers 52-2012, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  16. Gamberger, Dragan & Smuc, Tomislav, 2013. "Good governance problems and recent financial crises in some EU countries," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 7(41), pages 1-20.
  17. Mateo Vasco & Lina M. Cortés & Sandra C. Gaitán & Iván A. Durán, 2012. "Aplicación del modelo gravitacional al impacto del gobierno corporativo en las fusiones y adquisiciones en Latinoamérica," DOCUMENTOS DE TRABAJO CIEF 010709, UNIVERSIDAD EAFIT.
  18. Guo Yong & Cheng Wenhao, 2012. "Developing a City Governance Index: Based on Surveys in Five Major Chinese Cities," Social Indicators Research, Springer, vol. 109(2), pages 305-316, November.

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