Impact Of Governance Quality Research Articles

Impact of governance quality, population and economic growth on greenhouse gas emissions: An analysis based on a panel VAR model

Unlike the previous literature on climate change, this study employed the panel vector autoregressive model to examine the impact of population growth, governance quality, and economic growth on global warming. Moreover, we used the impulse response function tool, which was developed in the same context, to better understand the reaction of the main variables of interest, per capita greenhouse gas (GHG) emissions, aftershocks on population change, governance quality, and economic growth variables. Finally, the analysis was completed by the variance decomposition of all variables. These analyses were conducted for the 33 most polluting countries in terms of GHG from 1996 to 2019. The results show that both population growth and economic growth have a positive and significant influence on climate change and can strongly explain the gradual rise in Earth's temperature. Our empirical results show that there is a negative and significant relationship between the quality of governance and GHG emissions. The results show that there is a bidirectional causality between GHG emissions, population and economic growth. Based on the findings, this study proposes several policy recommendations.

The financial development and renewable energy consumption nexus in Africa: Does the quality of governance matter?

AbstractThe impact of financial development (FD) on renewable energy consumption has been extensively examined in recent years. Nevertheless, studies on the moderation of quality of governance in the financial development and renewable energy consumption nexus are sparse. By filling the gap in the literature relating to energy economicsc, this study investigates the moderating effect of the quality of governance on the relationship between financial development and consumption of renewable energy for a panel of 33 African countries over the period between 2000 and 2020. The fully modified ordinary least squares (FMOLS) estimation technique is used to account for cointegration and cross‐sectional dependence. The results unveil that the impact of governance quality and financial development on renewable energy consumption is negative and statistically significant. Moreover, the results reveal that the FD‐governance quality interactions are significant and negative. Governance quality thresholds at which the negative incidence of financial development on renewable energy consumption is completely nullified are provided.

The Impact of Governance Quality on Economic Growth: Case of Libya Period before and During the War

The Impact of Governance Quality on Economic Growth: Case of Libya Period before and During the War

Toward efforts to lessen income inequality in Asia: Exploring synergies between tourism and governance quality

While several studies have investigated the influence of tourism development on income inequality, the moderation of governance quality on the tourism-income inequality relationship remains scarce. Therefore, this study tries to fill the gap in the literature by examining the moderating effect of governance quality on the impact of tourism on income inequality in 30 Asian countries over the period 1996–2020. This study uses the dynamic ordinary least square (DOLS) and Panel corrected standard errors (PCSE) estimation techniques. The study unveils that the impact of tourism on income inequality is positive and statistically significant. However, the results show that the impact of governance quality on income inequality is negative and statistically significant. Importantly, the results show that the interaction term of tourism and governance quality has a negative and statistically significant effect on income inequality. Policy implications are discussed.

The impact of governance quality on central bank’s independence

The stable functioning of the public finance system requires a rational regulatory apparatus. The central bank occupies a special place in this system. Science and practice prove that the central bank’s political and economic independence determines its effectiveness. Thus, it is crucial to determine the prerequisites for ensuring its independence. The study aims to assess the influence of governance quality on the central bank’s independence, considering the variance of the socio-political development of countries. The analysis was conducted based on 53 countries. Panel regression modeling with random effects was chosen as a research method. The analysis approach involves calculations for the groups of countries that differ in social and political development parameters according to the following criteria: the initial level of the central bank independence; level of human development; political rights freedom; level of civil liberties; and political regime. Socio-political factors significantly affect the central bank’s independence in the following conditions: a high initial level of independence of the central bank, a high level of human development, and an average level of political and civil freedom. At the same time, the governance quality ensures the growth of the central bank’s independence regardless of the countries’ political regime. Three factors have the most significant influence on ensuring the independence of the central bank, namely “government efficiency,” “quality of regulation,” and “rule of law.”

Governance Quality and Financial Development in Africa

The study examines the effect of governance quality on financial sector development using an empirical panel dataset from 45 African countries for the period 1996–2018. To this end, four bundled governance quality indicators (i.e., general, political, economic, and institutional) variables are employed. The empirical estimation is based on Quantile Regression and other subsidiary Model. The inspiration for this estimation technique is based on the argument that the effect of governance quality is contingent on the existing level of financial development, and governance – financial development policies, to be effective, need to be tailored differently across countries with low, intermediate and high levels of financial sector development. The general findings are as follows: First, development in governance institutions promotes financial sector development. Second, in most of the cases, the impact of governance quality is higher in terms of magnitude in the upper quantiles of the general, political, economic and institutional governance distributions. Third, the effect of governance institutions is significantly higher in terms of magnitude in the top quantiles of the economic governance distribution. The results remain robust over alternative econometric estimation techniques.

COVID-19 vaccine equity in doldrums: Good governance deficits.

This paper explores whether inequities in access to COVID-19 vaccines can be attributed to governance deficits, particularly for developing and emerging countries where poor governance is widespread, but also for developed countries, where governments' performance fell short of expectations. These shared performance deficits beg questions about the impact of governance quality as well as the interplay of ethics in governance when life-or-death decisions must be made. It also explores the impact of COVID-19 on development, especially in the areas of poverty and employment. The findings of the paper show that there is a positive correlation between vaccine equity and good governance, meaning that countries with higher scores in governance rankings have more access to vaccines and have vaccinated most of their populations. Similarly, countries with relatively lower scores in governance rankings have poor access to and distribution of vaccines and have only covered a limited number of their people. The paper further points to disastrous societal impacts of COVID-19 vaccine inequity on poverty and employment, which have hindered global development.

Non-financial reporting in non-profit organisations: the case of risk and governance disclosures in UK higher education institutions

ABSTRACT This paper investigates non-financial reporting in non-profit organisations. Specifically, it examines the extent to which UK higher education institutions (HEIs) make voluntary disclosures relating to risk management practices, and investigates whether composite governance quality index and senior management team characteristics can influence such risk disclosures. Using a sample of UK HEIs over a number of years and drawing insights from neo-institutional theory, our findings are three-fold. First, our baseline findings contribute to the literature by showing that the level of risk disclosure among HEIs in the UK is relatively low, especially when compared to the findings of prior studies that have been conducted on similar-sized publicly traded corporations. Second, we contribute to the literature by providing timely evidence on the impact of governance quality on risk disclosure. In particular, our evidence contributes to the existing literature by demonstrating that better-governed HEIs tend to engage in higher risk disclosures than their poorly-governed counterparts. Finally, our study contributes to the extant literature by providing new evidence that offers support for the “shared” governance model among UK HEIs. Specifically, our findings show that the positive governance quality–risk disclosure relationship is moderated/explained largely by the characteristics of the senior management team. Our findings are robust to controlling for endogeneities and alternative estimation techniques, with major implications for non-financial reporting. HIGHLIGHTS This paper examines non-financial reporting (NFR) in non-profit organisations, with specific focus on risk disclosures by UK higher education institutions (HEIs) We examine the effect of UK HEIs' governance quality on the level of risk disclosures; We investigate whether management team characteristics moderate the governance quality-risk disclosures nexus in UK HEIs We find that better-governed UK HEIs tend to engage in higher levels of risk disclosures We show further that the positive governance quality-risk disclosure relationship is moderated/explained largely by the characteristics of the senior management team

Towards efforts to promote renewable energy development in Africa: Does governance quality matter?

In order to avert global climate change, the promotion of renewable energy is getting more attention from government and policymakers. There are many factors that can account for the determinant of renewable energy development. While the drivers of renewable energy development have been extensively examined, the influence of governance quality on renewable energy development is very scanty. To fill the gap in the literature, this study examines the influence of governance quality on renewable energy development in 42 African countries over the period 1996–2020. The empirical evidence is based on the panel corrected standard errors (PCSE) estimation technique to account for cross-sectional dependence. The results show that the impact of governance quality on renewable energy development is negative and statistically significant. This means that as governance quality increases, renewable energy development decreases. This is not surprising given the fact that governance quality in Africa is substantially low. In other words, the results imply that governance quality in most African countries still promote non-renewable and energy intensive production system.

The impact of governance quality and educational level on environmental performance

Environmental degradation and its impact on sustainable development have sparked the interest of national and international policymakers, specialists, and academia. This paper aims to demonstrate the empirical nexus between environmental performance, measured by carbon dioxide emissions, and education levels together with institutional quality in a society. To achieve this goal, the regression model includes the main variables that reflect the quality of governance (government effectiveness, regulatory quality, control of corruption, and rule of law), together with education dimension, gross domestic product, renewable energy consumption, fossil fuel energy consumption, and industry. The data were collected for the 1995–2020 period, for a set of 43 countries, consisting of all European Union (EU) members and The Group of Twenty (G20) states. The research uses three estimations methods, respectively Pooled ordinary least squares (Pooled OLS), Fixed effects model (FEM) and Random effects model (REM), together with a two-step dynamic GMM model, to address the endogeneity issue as well. The main results show that all the independent variables reflecting institutional quality from a technical point of view, included in the model when considering the PCSE estimation, have a direct and positive link to CO2 emissions’ level, with control of corruption variable being the only one to influence in a positive manner CO2 emissions at a significant level. Education level, together with economic growth, fossil fuel energy consumption and industry, had a negative significant impact as well upon environmental performance, an increase of one unit in these variables contributing to increased carbon dioxide levels in the EU and G20 sample when considering both the panel corrected model as well as the GMM scenario. Renewable energy is the only independent variable to manifest a significant positive and direct link with environmental performance, drawing attention to the need of adapting the primary sources of energy, in line with international organizations’ sustainable development policy recommendations. Also, there is a need to improve citizens’ perceptions of public services and institutions by building confidence in government’s ability to formulate and implement regulations.

Financial stability of Asian Nations: Governance quality and financial inclusion

This study investigates the role of governance quality in maintaining financial stability and enhancing financial inclusion in Asian countries using the stakeholder theory. Composite variables were constructed for the governance quality, financial stability, and financial inclusion dimensions using principal component analysis (PCA). The impact of governance quality on financial stability and financial inclusion was analyzed using dynamic system generalized method of moments (GMM) estimations. Additionally, using Baron and Kenny's approach, the mediating role of financial inclusion in the relationship between governance quality and financial stability was examined. The results obtained were robust to various standardization techniques. This study's findings suggest that governance quality negatively affects financial inclusion but has a positive influence on financial stability. Furthermore, financial inclusion positively affects financial stability in Asia. Finally, based on the results, we conclude that financial inclusion mediates the relationship between governance quality and financial stability.

Financial inclusion and economic growth: The role of governance in selected MENA countries

Although the relationship between financial development and economic growth have been extensively studied, the literature that examines the role of financial inclusion, as a key factor of financial development, and the possible impact of governance quality on financial inclusion link to growth is not as vast. Promoting financial inclusion and developing good governance are main, but challenging priorities in the MENA region. The paper empirically investigates the relationship between financial inclusion, governance, and economic growth in the MENA region. A system General Method of Moments (GMM) dynamic panel model technique is employed on annual data for 44 emerging markets (EMs) and MENA over the period 1990–2018, using a number of measures of financial inclusion covering the households and the firms’ access to finance. Particularly, the study uses indicators such as the number of bank accounts (per 1000 adult population), bank accounts for corporates/enterprises, and the number of bank branches and ATMS (per 100,000 people), percentage of firms using banks to finance investments, and the percentage of firms using bank loans to finance working capital. The results of the study indicate that financial inclusion positively impacts GDP per capita growth in the selected countries. Financial inclusion measured by the households’ financial access index has a positive and statistically significant impact on economic growth in the MENA region, but requires supervisory and regulatory regimes with backing of the rule of law, judicial independence, contract enforcement, control of corruption, and political stability. The results also indicate that the effect firms’ access to finance is only statistically significant in the presence of strong institutions. Finally, our results imply that countries with relatively low levels of financial access services, such as the MENA region, would benefit the most from an improvement in governance. Hence, our policy implications are directed towards developing a national strategic plan aimed towards improving access to finance coupled with policies aimed at improving the level of governance in order to maximize the impact of financial access on economic growth.

The Impact of Governance Quality on Subsidiaries’ Performance: A Survey Analysis from Turkey

We employ the quality of governance to study the impact of local institutional context on foreign subsidiaries’ performance. We propose and empirically document that local institutional quality has growth-enhancing effects on subsidiary growth. More specifically, we show that political stability, government effectiveness, regulatory quality, and rule of low are positively and significantly related to subsidiaries’ output. Our findings suggest that, apart from resources and market considerations, institutional constructs should be included as influential predictors in the general models investigating subsidiary performance.

Environmentalism in the EU-28 context: the impact of governance quality on environmental energy efficiency

Environmental policies are a significant cornerstone of a developed economy, but the question that arises is whether such policies lead to a sustainable growth path. It is clear that the energy sector plays a pivotal role in environmental policies, and although the current literature has focused on examining the link between energy consumption and economic growth through an abundance of studies, it does not explicitly consider the role of institutional or governance quality variables in the process. Both globalization and democracy are important drivers of sustainability, while environmentalism is essential for the objective of gaining a “better world.” Governance quality is expected to be the key, not only for economic purposes but also for the efficiency of environmental policies. To that end, the analysis in this paper explores the link between governance quality and energy efficiency for the EU-28 countries, spanning the period 1995 to 2014. The findings document that there is a nexus between energy efficiency and income they move together: the most efficient countries are in the group with higher GDP per capita. Furthermore, the results show that governance quality is an important driver of energy efficiency and, hence, of environmental policies.