Governance and Economic Growth (in Persian)

Good governance can influence economic growth and development through various pathways, including formulating appropriate strategies for economic growth, establishing institutional infrastructure, and developing economic policies for better resource allocation, reducing uncertainty and risk for economic agents, and consequently attracting long-term domestic and foreign investment. The question of what role good governance plays and the extent of its impact on growth, economic development, and poverty reduction has become not only a topic of discussion in the literature but also a significant concern for economists, policymakers, and development managers. In this research, the effects of corruption control, the rule of law, and government effectiveness as sub-indices of governance on economic growth are examined. Additionally, to enhance the model, governance variables, and the interplay between the sub-indices of governance with representatives of physical capital, human capital, and economic governance are utilized in an empirical testing model across a dataset of several countries in panel format. Data related to 51 countries was collected semi-randomly for the period from 2000 to 2020 from the World Bank. Based on the obtained results, the composite index of the rule of law, corruption control, and government effectiveness has a positive and significant effect on economic growth. Furthermore, the aforementioned interaction components also have a positive and significant impact on economic growth