Governance and growth: empirical evidence from developing countries, 1998-2016

Abstract

Economic growth is one of the most important objectives in every country, especially developing countries. Therefore, exploring the factors affecting economic growth is the curious subject that many scholars research on. Among them, governance is considered as deep determinant of economic growth. However, governance is a multi- dimension concept. By suitable panel estimation methods, this paper tends to analyze the impact of goverance on economic growth in developing countries. Empirical results show that, governance generally has a positive effect on economic growth. However, the political institution dimension of governance plays a significant role in governance- economic growth nexus. Consenquently, this research proposes some ideas to improve governance quality in Viet Nam and other developing countries.