Does the quality of government affect economic growth? Evidence from the QOG dataset Online publication date: Fri, 05-Jul-2024
by Huong Le
International Journal of Public Policy (IJPP), Vol. 17, No. 4, 2024
Abstract: Does the quality of government (QoG) affect economic growth? The paper considers whether or not a higher governance quality leads to a higher rate of economic growth. This paper sheds light on this debate by reinvestigating the relationship between the quality of government and economic growth, utilising four different operationalisations of governance quality, including the rule of law, quality of democracy, public integrity, and governance from the quality of government (QoG) dataset of 36 OECD countries. Contributing to the growing body of work on the correlation between governance quality and economic growth, this paper suggests that: 1) despite using different operationalisations of governance quality, the estimation results suggest a statistically significant and positive correlation between the quality of government and economic growth; 2) developed countries obtain more significant benefits of good governance on economic growth than developing countries.
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