Geography and governance: Does space matter?
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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Volume (Year): 89 (2010)
Issue (Month): 3 (08)
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