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Relationship between governance indicators and economic growth: a descriptive study

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  • Alouani, Ahmed

Abstract

In this article, the relationship between governance indicators and economic growth over the time period (1996-2017) will be theoretically and statistically examined. To do this, we looked at Tunisia's economy in the first section. In the second, we looked at the state of Tunisian governance. Finally, in the third, we looked at how governance indicators affected economic expansion. Using this method, we were able to demonstrate the beneficial effects of certain governance indicators on Tunisia's economic growth, including political stability, the rule of law, and regulatory quality. So, the fight against corruption can help the economy grow even more. On the other hand, other governance metrics like accountability, voice, and government effectiveness are not having the expected growth effects. Political leaders must therefore enhance governance metrics like political stability and corruption management. Since 2011, Tunisia's successive governments have persisted in trying to put the country on the path to long-term, sustainable growth. Although the improvements are still straightforward, the measures are growing.

Suggested Citation

  • Alouani, Ahmed, 2023. "Relationship between governance indicators and economic growth: a descriptive study," MPRA Paper 118413, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118413
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    More about this item

    Keywords

    Political stability; economic growth; rule of law; good regulation; governance;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K29 - Law and Economics - - Regulation and Business Law - - - Other
    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other

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