Good governance and sustainable human development: Evidence from the Egyptian experience

Abstract

This study aims to investigate the relationship between good governance and sustainable human development in Egypt from 1996 to 2019. This study examines this relationship in both the long term and short term. This study is one of the rare studies that investigate the relationship between good governance and sustainable human development at the global level. Moreover, Its construction of an indicator of sustainable human development through the principal component analysis (PCA). The study adopted the Johansen Co-integration method and the use of Error Correction Model (ECM) to measure the long-and short-term relationship between overall good governance and sustainable human development in Egypt. This study also uses the dynamic ordinary least squares (DOLS) method to obtain robustness in analyzing the relationship between overall good governance and sustainable human development. The method of generalized linear models (GLM) was also used with the use of the Bootstrap method in measuring the relationship between the components of good governance and sustainable human development in Egypt to determine the most significant factors of good governance that drive sustainable human development in Egypt. Results indicated that overall good governance only contributes to achieving sustainable human development in Egypt in the long term. There is no causal relationship between good governance and sustainable human development in the short term. Sustainable human development in the previous year contributes positively and significantly to its growth in the current year. In addition, corruption control has a negative and significant relationship with the sustainable human development index.