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Governance and growth: measurement and evidence

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  • Knack, Stephen

Abstract

This paper describes the gradual accumulation of indicators and evidence of the links between governance and growth, focusing on broad cross-country analyses. While each governance indicator developed thus far is in some way imperfect, the faults of some measures are entirely independent from those of others. Therefore, in aggregate, the totality of indicators point in the same direction: good governance is crucial for growth. Unfortunately, while current indicators are getting better at determining the quality of governance, they still are unable to implicate particular institutional arrangements that donors should devote their attention and resources towards. Moreover, the subjectivity of some indicators invites suspicion from local governments and makes reform difficult.

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  • Knack, Stephen, 2002. "Governance and growth: measurement and evidence," MPRA Paper 28050, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:28050
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    References listed on IDEAS

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    Cited by:

    1. Loayza, Norman V. & Soto, Raimundo, 2004. "On the measurement of market-oriented reforms," Policy Research Working Paper Series 3371, The World Bank.
    2. Adegoke Ibrahim Adeleke, 2014. "Fdi-Growth Nexus In Africa: Does Governance Matter?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(1), pages 111-135, March.
    3. Hazel Gray, 2016. "Access Orders and the ‘New’ New Institutional Economics of Development," Development and Change, International Institute of Social Studies, vol. 47(1), pages 51-75, January.
    4. Eugeniusz Wojciechowski & Aldona Podgórniak-Krzykacz, 2008. "Pomiar jakości rządzenia," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 19-38.
    5. Siddiqui, Danish Ahmed & Ahmed, Qazi Masood, 2013. "The effect of institutions on economic growth: A global analysis based on GMM dynamic panel estimation," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 18-33.
    6. Abderraouf Ben Ahmed Mtiraoui, 2020. "Corruption between economic institutional aspect and social aspect through governance [La corruption entre l’aspect institutionnel économique et l’aspect social à travers la gouvernance]," Working Papers hal-02535463, HAL.
    7. Dawid Piątek & Katarzyna Sarzec, 2009. "Państwo a dobrobyt ekonomiczny - między wolnością a przymusem," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5-6, pages 1-19.
    8. Bhanu Pratap Singh, 2022. "Does Governance Matter? Evidence from BRICS," Global Business Review, International Management Institute, vol. 23(2), pages 408-425, April.
    9. Susana Ferreira & Jeffrey Vincent, 2010. "Governance and Timber Harvests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(2), pages 241-260, October.

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    More about this item

    Keywords

    governance; growth; institutional development;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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