The impact of the form of public governance on the economy

Abstract

There is a direct connection between the model of the system of governance in a specific country and its impact on rights, freedoms, growth rates, and the standard of living of its population. In turn, the choice of a governance model depends on the action of various factors, such as the cultural level and development of society, the availability of natural reserves, the quality of the education and science system, and the level of development of the system of country’s governance. From a theoretical point of view, the parliamentary model of governance is considered the most favorable in terms of upholding citizens' rights and freedoms and promoting the well-being of the population. The presidential model ranks second, while the super-presidential model performs modestly. The testing of theoretical assumptions regarding the impact of different models of republican governance on a country's development was conducted using a sample of 147 countries. The sample encompassed the years 1995 to 2021 and was derived from the World Bank database. However, it is important to note that countries with forms of governance such as absolute monarchy or junta considered to be backward were excluded from the sample. The empirical testing conducted supports the hypothesis that countries with a parliamentary form of governance have higher expected growth and well-being for their population in the long run. However, the countries using super-presidential, presidential models of governance, and countries with limited constitutional monarchies, exhibit lower expected long-term growth rates of per capita income.