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Does Governance Matter? Yes, No or Maybe Some Evidence from Developing Asia

  • M. G. Quibria

    (SMU)

This paper seeks to explore the relationship between economic growth and governance performance in Asian developing economies. This exploration yields some interesting conclusions. First, notwithstanding its tremendous economic achievements, the state of governance in Asia is not stellar by international comparison. Indeed, a majority of these countries seem to suffer from a governance deficit. Second, contrary to our expectation, data do not suggest any strong positive link between governance and growth : paradoxically, countries that exhibit surpluses in governance on average grew much slower than those with deficits. The paper ends with some conjecture about this apparent paradox.

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File URL: http://www.eaber.org/node/22474
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Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22474.

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Date of creation: Jan 2006
Date of revision:
Handle: RePEc:eab:develo:22474
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org

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  1. Daniel Kaufmann & Aart Kraay, 2002. "Growth without Governance," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  2. Daniel Kaufmann & Aart Kraay & Massimo Mastruzzi, 2003. "Governance Matters III: Governance Indicators for 1996-2002," Development and Comp Systems 0308001, EconWPA.
  3. Dani Rodrick, 2003. "Growth Strategies," Economics working papers 2003-17, Department of Economics, Johannes Kepler University Linz, Austria.
  4. Daniel Kaufmann, 2004. "Governance Redux: The Empirircal Challenge," Law and Economics 0405001, EconWPA.
  5. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, 09.
  6. Quibria, M.G., 2002. "Growth and Poverty: Lessons from the East Asian Miracle Revisited," MPRA Paper 2638, University Library of Munich, Germany.
  7. M. G. Quibria, 2005. "Rethinking Development Effectiveness," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(1), pages 101-117, January.
  8. Steven Radelet, 2004. "Aid Effectiveness and the Millennium Development Goals," Working Papers 39, Center for Global Development.
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