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Geography and governance: Does space matter?

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  • Harry Seldadyo
  • J. Paul Elhorst
  • Jakob De Haan

Abstract

Studies on governance generally ignore spatial dependence among the observations. Employing spatial econometric methods, we find that governance in one country exhibits a positive relationship with governance in neighbouring countries. Consequently, a change in a single explanatory variable in a particular country not only affects the level of governance in that country itself, but also in neighbouring countries. Using maximum likelihood function values and Bayesian posterior model probabilities, we also find that the spatial arrangement of the countries in the sample is best described by a spatial weights matrix based on the 10 nearest neighbours of every country in the sample. Copyright (c) 2010 the author(s). Journal compilation (c) 2010 RSAI.

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  • Harry Seldadyo & J. Paul Elhorst & Jakob De Haan, 2010. "Geography and governance: Does space matter?," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 625-640, August.
  • Handle: RePEc:bla:presci:v:89:y:2010:i:3:p:625-640
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    1. Kelejian, Harry H. & Murrell, Peter & Shepotylo, Oleksandr, 2013. "Spatial spillovers in the development of institutions," Journal of Development Economics, Elsevier, vol. 101(C), pages 297-315.
    2. Shaoming Cheng & Huaqun Li, 2012. "New firm formation facing cultural and racial diversity," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 759-774, November.
    3. Faber, Gerrit & Gerritse, Michiel, 2012. "Foreign determinants of local institutions: Spatial dependence and openness," European Journal of Political Economy, Elsevier, vol. 28(1), pages 54-63.
    4. repec:eee:touman:v:62:y:2017:i:c:p:350-359 is not listed on IDEAS
    5. repec:oup:jecgeo:v:17:y:2017:i:6:p:1149-1178. is not listed on IDEAS
    6. Ahmad, Mahyudin & Hall, Stephen G., 2012. "Institutions and growth: Testing the spatial effect using weight matrix based on the institutional distance concept," MPRA Paper 42294, University Library of Munich, Germany.
    7. repec:taf:regstd:v:50:y:2016:i:11:p:1819-1833 is not listed on IDEAS
    8. Andreas P. Kyriacou & Leonel Muinelo-Gallo & Oriol Roca-Sagalés, 2015. "Regional inequalities, fiscal decentralization and government quality: empirical evidence from simultaneous equations," Working Papers. Collection A: Public economics, governance and decentralization 1501, Universidade de Vigo, GEN - Governance and Economics research Network.
    9. Elzbieta Antczak & Ewa Galecka-Burdziak & Robert Pater, 2016. "Spatial Labour Market Matching," CERGE-EI Working Papers wp578, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    10. repec:wsi:serxxx:v:62:y:2017:i:02:n:s0217590815501155 is not listed on IDEAS
    11. Michael Berlemann & Vera Jahn, 2016. "Regional Importance of Mittelstand Firms and Innovation Performance," Regional Studies, Taylor & Francis Journals, vol. 50(11), pages 1819-1833, November.
    12. repec:eee:jpolmo:v:39:y:2017:i:6:p:1065-1085 is not listed on IDEAS
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    15. Bulent Esiyok & Mehmet Ugur, 2017. "A Spatial Regression Approach To Fdi In Vietnam: Province-Level Evidence," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 459-481, June.
    16. Marek Hanusch, 2013. "Islam and democracy: a response," Public Choice, Springer, vol. 154(3), pages 315-321, March.
    17. Ward, Hugh & Dorussen, Han, 2015. "Public Information and Performance: The Role of Spatial Dependence in the Worldwide Governance Indicators among African Countries," World Development, Elsevier, vol. 74(C), pages 253-263.
    18. Roberto Ezcurra & Vicente Rios, 2013. "Is there cross-country convergence in government quality? A non-parametric analysis," Economics Bulletin, AccessEcon, vol. 33(4), pages 2661-2671.
    19. Ahmad, Mahyudin & Hall, Stephen G., 2012. "Institutions-growth spatial dependence: An empirical test," MPRA Paper 42360, University Library of Munich, Germany.
    20. Kyriacou, Andreas P., 2012. "Beliefs about the determinants of success and employment protection," Economics Letters, Elsevier, vol. 116(1), pages 31-33.
    21. Hermann Pythagore Pierre Donfouet & P. Wilner Jeanty & Eric Malin, 2013. "A Spatial Dynamic Panel Analysis of Corruption," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201324, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    22. Roberto Ezcurra & Andr Rodríguez-Pose, 2014. "Government quality and spatial inequality: a cross-country analysis," Environment and Planning A, Pion Ltd, London, vol. 46(7), pages 1732-1753, July.
    23. Lorenz Blume & Bernd Hayo & Stefan Voigt, 2015. "Correlates and Determinants of Direct Democracy," MAGKS Papers on Economics 201501, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    24. Rajeev Goel & James Saunoris, 2014. "Global corruption and the shadow economy: spatial aspects," Public Choice, Springer, vol. 161(1), pages 119-139, October.
    25. repec:eee:jpolmo:v:39:y:2017:i:5:p:790-808 is not listed on IDEAS

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