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Governance and growth: measurement and evidence

Author

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  • Knack, Stephen

Abstract

This paper describes the gradual accumulation of indicators and evidence of the links between governance and growth, focusing on broad cross-country analyses. While each governance indicator developed thus far is in some way imperfect, the faults of some measures are entirely independent from those of others. Therefore, in aggregate, the totality of indicators point in the same direction: good governance is crucial for growth. Unfortunately, while current indicators are getting better at determining the quality of governance, they still are unable to implicate particular institutional arrangements that donors should devote their attention and resources towards. Moreover, the subjectivity of some indicators invites suspicion from local governments and makes reform difficult.

Suggested Citation

  • Knack, Stephen, 2002. "Governance and growth: measurement and evidence," MPRA Paper 28050, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:28050
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    File URL: https://mpra.ub.uni-muenchen.de/28050/1/MPRA_paper_28050.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Loayza, Norman V. & Soto, Raimundo, 2004. "On the measurement of market-oriented reforms," Policy Research Working Paper Series 3371, The World Bank.
    2. Siddiqui, Danish Ahmed & Ahmed, Qazi Masood, 2013. "The effect of institutions on economic growth: A global analysis based on GMM dynamic panel estimation," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 18-33.
    3. Susana Ferreira & Jeffrey Vincent, 2010. "Governance and Timber Harvests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(2), pages 241-260, October.

    More about this item

    Keywords

    governance; growth; institutional development;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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