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Government Effectiveness and Economic Growth

Author

Listed:
  • Md Rafayet Alam

    (University of Tennessee at Chattanooga, TN)

  • Erick Kitenge

    (Central State University, OH)

  • Bizuayehu Bedane

    (The Catholic University of America, DC)

Abstract

This paper employs a System Generalized Method of Moments (System GMM) technique to examine the impact of government effectiveness on the economic growth of a panel of 81 countries. The paper finds a significant positive effect of government effectiveness on economic growth.

Suggested Citation

  • Md Rafayet Alam & Erick Kitenge & Bizuayehu Bedane, 2017. "Government Effectiveness and Economic Growth," Economics Bulletin, AccessEcon, vol. 37(1), pages 222-227.
    • Handle: RePEc:ebl:ecbull:eb-16-00708
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I1-P21.pdf
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    References listed on IDEAS

    as
    1. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    2. Avinash Dixit, 2009. "Governance Institutions and Economic Activity," American Economic Review, American Economic Association, vol. 99(1), pages 5-24, March.
    3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    4. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    5. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    6. Daron Acemoglu & James Robinson, 2010. "The Role of Institutions in Growth and Development," Review of Economics and Institutions, Università di Perugia, vol. 1(2).
    7. Sabina Alkire, 2010. "Human Development: Definitions, Critiques, and Related Concepts," Human Development Research Papers (2009 to present) HDRP-2010-01, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    8. M.G. Quibria, 2006. "Does Governance Matter? Yes, No or Maybe: Some Evidence from Developing Asia," Kyklos, Wiley Blackwell, vol. 59(1), pages 99-114, February.
    9. Mushtaq H. Khan, 2007. "Governance, Economic Growth and Development since the 1960s," Working Papers 54, United Nations, Department of Economics and Social Affairs.
    10. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marc-Arthur Diaye & Sy-Hoa Ho & Rim Oueghlissi, 2022. "ESG performance and economic growth: a panel co-integration analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(1), pages 99-122, February.
    2. Chletsos, Michael & Sintos, Andreas, 2024. "Political stability and financial development: An empirical investigation," The Quarterly Review of Economics and Finance, Elsevier, vol. 94(C), pages 252-266.
    3. Imad El Hamma, 2018. "Migrant Remittances and Economic Growth: The Role of Financial Development and Institutional Quality," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 503-504, pages 123-142.
    4. Ashraf Helmy, 2021. "The Effect of Institutional Quality on the Balance of Payments in African Countries. A Comparative Study," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(7), pages 1-55, June.
    5. Wadad Saad & Hassan Ayoub, 2019. "Remittances, Governance and Economic Growth: Empirical Evidence from MENA Region," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(8), pages 1-1, August.
    6. Hira Mujahid & Shaista Alam, 2020. "The Impact of Sectors Performance and Quality of Institutions on Economic Volatility: In Case of Asia," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(4), pages 260-269, December.
    7. Anis Ochi & Yosra Saidi & Mohamed Ali Labidi, 2023. "Non-linear Threshold Effect of Governance Quality on Economic Growth in African Countries: Evidence from Panel Smooth Transition Regression Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4707-4729, December.

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    More about this item

    Keywords

    Government effectiveness; economic growth; system GMM;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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