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Effectiveness Of Governance Vs Social Development: A Multivariate Approach To Countries’ Classification

Author

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  • Oksana LIASHENKO

    (Professor, DSc in Economics, PhD, Universidad de Sevilla, Faculty of Economic Sciences and Entrepreneurship, Av. de Ramón y Cajal, 1, 41004, Seville, Spain)

  • Olena MYKHAILOVSKA

    (DSc in Public Administration, Management and Administration Department, Chernihiv Polytechnic National University, Shevchenko Str., 95, 14053, Chernihiv, Ukraine)

  • Tetiana SHESTAKOVSKA

    (DSc in Public Administration, Docent, Chernihiv Institute of Information, Business and Law, Higher Educational Institution «Academician Yuriy Bugay International Scientific and Technical University», 27 Remisnycha St., 14000, Chernihiv, Ukraine)

  • Serhiy SELYUTIN

    (Candidate of Economic Sciences, Chernihiv Institute of Information, Business and Law, Higher Educational Institution «Academician Yuriy Bugay International Scientific and Technical University», 27 Remisnycha St., 14000, Chernihiv, Ukraine)

Abstract

Effective governance is pivotal in fostering social development and economic growth in modern societies. This paper explores the intricate relationship between social progress and government administration quality, aiming to identify the critical determinants influencing countries' social progress. We hypothesise that effective governance exerts a comprehensive influence on countries' social progress and vice versa, not only at the level of partial correlation. Drawing on the Social Progress Index (SPI) and Worldwide Governance Indicators (WGI), we employ discriminant analysis to understand how different dimensions of government effectiveness contribute to social development (Androniceanu & Georgescu, 2023). The study finds that several factors significantly influence social progress, including Voice and Accountability, Political Stability, Control of Corruption, Regulatory Quality, and Government Effectiveness. By analysing data from 167 countries, we classify nations into high, medium, and low social progress groups based on SPI scores. The discriminant analysis model achieves an accuracy of 92.2% in classifying countries, indicating the robustness of the approach. Furthermore, multivariate Wilk’s Tests of Significance reveal that variables related to water and sanitation, access to basic knowledge, access to information and communications, environmental quality, personal safety, and access to advanced education are determinants of social progress. The discriminant functions derived from the analysis provide insights into the relative importance of these variables in determining countries' social progress levels. Our findings underscore the importance of effective governance in driving countries' social development outcomes. By identifying key factors that contribute to social progress, policymakers can design targeted strategies to enhance governance effectiveness and promote sustainable societal advancement. The study contributes to the existing literature by providing empirical evidence of the relationship between government efficiency and social development on a global scale.

Suggested Citation

  • Oksana LIASHENKO & Olena MYKHAILOVSKA & Tetiana SHESTAKOVSKA & Serhiy SELYUTIN, 2024. "Effectiveness Of Governance Vs Social Development: A Multivariate Approach To Countries’ Classification," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2024(42), pages 6-24.
    • Handle: RePEc:rom:rampas:v:2024:y:2024:i:42:p:6-24
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    References listed on IDEAS

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    1. Kobi Abayomi & Gonzalo Pizarro, 2013. "Monitoring Human Development Goals: A Straightforward (Bayesian) Methodology for Cross-National Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(2), pages 489-515, January.
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    3. George Dellaportas., 1983. "Classification of Nations as Developed and Less Developed: An Arrangement by Discriminant Analysis of Socioeconomic Data," American Journal of Economics and Sociology, Wiley Blackwell, vol. 42(2), pages 153-166, April.
    4. Azmat Gani, 2011. "Governance and Growth in Developing Countries," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(1), pages 19-40.
    5. Milenkovic, Nemanja & Vukmirovic, Jovanka & Bulajic, Milica & Radojicic, Zoran, 2014. "A multivariate approach in measuring socio-economic development of MENA countries," Economic Modelling, Elsevier, vol. 38(C), pages 604-608.
    6. Jaya Krishnakumar, 2008. "Multidimensional Measures of Poverty and Well-being Based on Latent Variable Models," Palgrave Macmillan Books, in: Nanak Kakwani & Jacques Silber (ed.), Quantitative Approaches to Multidimensional Poverty Measurement, chapter 7, pages 118-134, Palgrave Macmillan.
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    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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