Governance and Economic Performance in Developing Countries: An Empirical Study

The purpose of this paper is to investigate the impact of institutional quality on economic growth. Indeed, in recent years economics literature and debates have increasingly referred to the link between governance and economic performances as the appropriate answers to the longstanding questions concerning how economic growth arises. Given this main objective of this study, we first discuss how political institutions contribute to determining economic performance. Then, we present the empirical analysis which identifies the interaction between political institutions and economic growth in developing countries. The main finding of this paper is that improving the quality of political institutions is associated with a decrease in the level of corruption and with a sustainable economic growth in developing countries. Consequently, the institutional failures that characterize developing countries lead inevitably to destabilize their long-term economic growth and a higher degree of democratization would be a better improvement in their economic growth.

並列關鍵字

governance ； economic growth ； developing countries ； panel data

國際替代計量

全文下載

主題瀏覽