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Measuring Quality of Governance in Turkey: A Composite Governance Index

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  • Onur POLAT

Abstract

In this study, we analyze the quality of governance in Turkey by using worldwide governance indicators (WGIs), namely, voice and accountability (VA), political stability and absence of violence (PV), government effectiveness (GE), regulatory quality (RQ), rule of law (RL), and control of corruption (CC) which aggregate 6 dimensions of governance. In that regard, we employ principal component analysis (PCA) to construct a composite governance index (CGI) for Turkey over the 2002-2017 period. We find that the CGI creates proper signals to both economic and political disequlibriums observed in the post-2001 financial crisis era. Our findings underline an effective regulatory framework for monitoring the quality of governance and accordingly suggests the CGI as a policy tool.

Suggested Citation

  • Onur POLAT, 2020. "Measuring Quality of Governance in Turkey: A Composite Governance Index," Fiscaoeconomia, Tubitak Ulakbim JournalPark (Dergipark), issue 1.
    • Handle: RePEc:fis:journl:200103
    DOI: 10.25295/fsecon.2020.01.003
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    References listed on IDEAS

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    1. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "The worldwide governance indicators project : answering the critics," Policy Research Working Paper Series 4149, The World Bank.
    2. Rachel M. Gisselquist, 2014. "Developing and evaluating governance indexes: 10 questions," Policy Studies, Taylor & Francis Journals, vol. 35(5), pages 513-531, September.
    3. Daniel Kaufmann & Aart Kraay, 2008. "Governance Indicators: Where Are We, Where Should We Be Going?," The World Bank Research Observer, World Bank, vol. 23(1), pages 1-30, January.
    4. Polat, Onur & Ozkan, Ibrahim, 2019. "Transmission mechanisms of financial stress into economic activity in Turkey," Journal of Policy Modeling, Elsevier, vol. 41(2), pages 395-415.
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    Keywords

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    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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