Estimating the Quality of Economic Governance: A Cross-Country Analysis
AbstractThis paper proposes a methodology to combine different dimensions of economic governance into a combined index. The quality of economic governance index (QEGI) is estimated as the weighted average of principal components of the standardised economic governance indicators, where weights are variances of successive principal components. The paper reports the QEGI for 71 developing and transition economies in 1998-2000. The evidence from a simple scatter diagram and a cross country regression analysis indicates that the better economic governance positively affects the economic performance (e.g., rise in per capita income, decline in poverty level, etc.) for sample of countries in our analysis.
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Bibliographic InfoPaper provided by EconWPA in its series Econometrics with number 0509012.
Length: 31 pages
Date of creation: 08 Sep 2005
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Note: Type of Document - pdf; pages: 31. pdf format
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Economic governance; Economic performance; Cross-country analysis; principal component.;
Find related papers by JEL classification:
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- N4 - Economic History - - Government, War, Law, International Relations, and Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-09-17 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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