Role Of Governance Quality Research Articles

Does Import of Information and Communications Technology (ICT) Goods Foster Sustainable Economic Development in Sub-Saharan Africa? The Role of Governance Quality

Does Import of Information and Communications Technology (ICT) Goods Foster Sustainable Economic Development in Sub-Saharan Africa? The Role of Governance Quality

The Rule of Law and Entrepreneurship Development in Nigeria: The Role of Governance Quality

This study examined the impact of the Rule of Law and the Role of Governance Quality on entrepreneurship development in Nigeria from 1998 to 2022. This research appropriated the use of Auto Regressive Distributed Lag to empirically investigate the rule of law and the role of governance quality on the dependent variable Entrepreneurial Development (ED) using data sourced from 1998 – 2022. The independent variables include; Gross Domestic Product per Capita (GDP/C), Inflation (INFL), Governance Effectiveness (GE), Regulatory quality (RQ), and the rule of law (RL). The study shows that the natural log of GDP/C is statistically significant and has a positive relationship with entrepreneurship development while Despite being statistically significant, INFL & ED have a negative relationship. Meanwhile, RL has a positive attribute but a statistically insignificant relationship with ED and a statistically negatively insignificant relationship exists between GE, RQ, and ED. The study recommends the Government must deliberately work towards reforming the legal system to have an effective Rule of Law, and improve regulatory quality and governance effectiveness that will lead to economic efficiency and improved living standards. Keywords: Entrepreneurship Development, Economic growth, Rule of law, Start-up, Innovation

Digital Economy and Poverty Reduction in Africa: The Role of Governance Quality

Digital Economy and Poverty Reduction in Africa: The Role of Governance Quality

Role of Governance Quality in Remittances-poverty Relationship: New Insights from Transition Economies

This study examines the moderating role of institutional quality on a remittance-poverty relationship using a panel of 16 transition economies for 2002–2020. The study used pooled mean group/autoregressive distributed lag estimation with unit root and cointegration tests. The poverty is proxied by household consumption expenditure. After establishing cointegration, remittances and institutional quality index were found to positively affect poverty alleviation in the long run. The interactive term showed that remittances and institutional quality complemented the remittance-poverty relationship. In addition, a unidirectional causal relationship existed from remittance to poverty alleviation and institutional quality to poverty. Further, bidirectional causality existed between remittances and institutional quality, which confirms their complementary nature in the remittance-poverty relationship. Lastly, policy prescriptions are provided in the conclusion of the article. JEL Codes: F22, F24, J61

The role of governance quality on mobilizing environmental technology and environmental taxations for renewable energy and ecological sustainability in belt and road economies: A methods of Moment's quantile regression

Climate change poses a pressing and urgent peril to the overall welfare of the planet, with far-reaching implications for human livelihoods. The aim of this research is to explore the influence of environmental technologies, environmental taxes, and FDI in B&R economies on increasing renewable energy use and lowering ecological footprints. It also strives to examine how the quality of governance in B&R nations affects the promotion of these environmental initiatives. This study presents interesting results by employing a unique Method of Moments Quantile Regression approach for the period from 1996 to 2018. This highlights the government's ability to effectively utilize environmental technologies and implement a streamlined taxation system, bolstering the renewable energy industry and addressing environmental concerns. Moreover, the study highlights the beneficial impact of governmental initiatives in attracting environmentally friendly investments in the renewable energy sector. However, significant reforms are necessary to execute taxation policies efficiently and offer strong backing for technological progress in the renewable energy industry, aiming to decrease carbon emissions substantially. The findings suggest a need for policy recommendations to increase renewable energy consumption and rectify ecological imbalances, with a focus on matching government goals and reforms associated with environmental taxation and technology.

Does political decentralization affect income inequality? The role of governance quality

ABSTRACT This paper examines whether an increase in political decentralization, which is a global trend, affects income inequality. It argues that the effect of decentralization on equality lies with the quality of governance, that is, how well the traditions and institutions of an authority in a country are exercised. Using an instrumental variables (IV)/two-stage least squares (2SLS) method, this paper shows that an increase in decentralization reduces inequality. However, this reduction is stronger for countries with a relatively low quality of governance, possibly because private investments in these countries reduce income inequality. A policy implication is that institutional-specific decentralization strategies can reduce inequalities.

Business cycles and redistribution: The role of government quality

We study how government quality mediates the relationship between business cycles and redistribution. Our key hypothesis is that the potential of income redistribution to reduce rising inequality levels after an economic crisis depends on government quality. The empirical evidence based on a panel of 46 countries over the period 1996–2016 lends strong support to this hypothesis. We find that macroeconomic recessions promote redistribution of income in high government quality contexts, but they lead to wider economic inequalities in countries with poor quality of government.

Does governance quality enhance the efficacy of macroprudential policy?

This paper explores the role of governance quality (GQ) in assisting macroprudential regulations (MPRs) to minimize the financial risk (FR). We collect data of 124 countries over 2000–2017 years and estimate the joint-impact of GQ and MPRs applying advanced econometric methods that deal with the endogeneity and ensure the robustness. Our results confirm that the role of GQ in MPRs–FR interaction depends on the nature of MPR instruments. These findings are critical for devising policies to preserve financial stability (FS).

The Persistence of Weapons: Global Evidence

This article investigates persistence (or hysteresis) in weapons using a panel of 163 countries for the period 2010‐15. The following are some main findings: (1) compared to countries that are landlocked, persistence in heavy weapons is more apparent in nations that are open to the sea; (2) relative to the Middle East and North Africa, heavy weapons are more persistent in the East Asia and the Pacific countries. This tendency is consistent with “weapons imports;” (3) evidence of persistence is not very apparent in “weapons imports” with the exception of the fact that it is higher in low‐income countries, compared to their high‐income counterparts. Hence, there is less hysteresis in weapons exports when compared with heavy weapons exports; and (4) the determinants of persistence employed in the conditioning information set are contingent on fundamental characteristics and panels. Policy implications are discussed.Related ArticlesBeal, Amanda L., and Leah Graham. 2014. “Foundations for Change: Rule of Law, Development, and Democratization.” Politics & Policy 42 (3): 311‐345. https://doi.org/10.1111/polp.12077Fails, Matthew D. 2014. “Leader Turnover, Volatility, and Political Risk.” Politics & Policy 42 (3): 369‐399. https://doi.org/10.1111/polp.12078Jakubow, Alexander. 2014. “State Intervention and Life Satisfaction Reconsidered: The Role of Governance Quality and Resource Misallocation.” Politics & Policy 42 (1): 3‐36. https://doi.org/10.1111/polp.12057Peev, Evgeni, and Dennis C. Mueller. 2013. “Democracy, Economic Freedom and Growth in Transition Economies.” Kyklos 65 (3): 371‐407. http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6435.2012.00543.x/abstractSiddiqui, Danish A., and Qazi M. Ahmed. 2013. “The Effect of Institutions on Economic Growth: A Global Analysis Based on GMM Dynamic Panel Estimation.” Structural Change and Economic Dynamics 24: 18‐33. http://www.sciencedirect.com/science/article/pii/S0954349X12000902

Energy based estimation of the shadow economy: The role of governance quality

The shadow economy (SE) is a pathological normalcy, not only in developing countries but also in developed ones, causing disagreeable distortions in the real economy. In this paper, we estimate the size of the informal sector in nineteen countries of the European Union (EU) by implementing three variations of the physical input approach (we use electricity consumption as input). All estimates show that EU countries experience high shadow economy levels with a decreasing trend. Moreover, we assess the explanatory power of three governance quality indicators of the informal sector using a set of panel regression specifications as well as a set of quantile regression specifications. Both approaches show that overall governance quality is the most prominent factor in determining the SE levels. Given the inherent advantage of quantile regression to identify impact differentiations across the conditional distribution of the dependent variable a significant policy action is revealed. In particular, countries with high shadow economy levels can reduce their informal sector, at an increasing rate, by improving governance quality.

The efficiency of transport infrastructure investment and the role of government quality: An empirical analysis

In this article we analyze the efficiency of total transport investment in a sample of 34 countries over the period 1996 to 2010. We do so by way of Data Envelopment Analysis that evaluates countries according to their ability to achieve the maximum attainable infrastructure quantity and usage for a given investment volume. We find that the Central European countries, New Zealand and Japan are the most efficient when investing in transport infrastructure while the Eastern European countries, Russia, Turkey and Mexico are the least so. We moreover consider the role played by government quality when explaining cross-country differences in investment efficiency, based on truncated panel (and bootstrapped) regressions. We confirm the positive impact of government quality on efficiency even after controlling for a range of potentially confounding variables. Our analysis generates important policy implications for those concerned with the efficiency of transport infrastructure.

Exploring spillovers between government quality and individual health production through sport and physical activity

ABSTRACTResearch question: The purpose of this study is to examine whether and how government quality is related to individual health production through sport and physical activity. Previous research has only examined the role of government through the lens of government spending and provision of facilities, but not the role of government quality per se.Research methods: Individual survey data from the 2013 Eurobarometer (n = 20,419) were combined with data on government quality and expenditure as well as GDP for 21 European countries. The sport and physical activity measures reflect whether an individual's activity level (including or excluding walking) is below the guidelines of the World Health Organization, meets, or exceeds them, securing extra health benefits.Results and findings: The results of multi-level models show that government quality is significantly and positively associated with individual sport and physical activity meeting or exceeding the guidelines, controlling for GDP and government spending. The empirical evidence suggests that there are spillovers between government quality and individual health production through sport and physical activity.Implications: The findings indicate that a more open and accountable government can provide the regulatory framework and tolerance required for more effective structural delivery of sport and physical activity in society.

State Intervention and Life Satisfaction Reconsidered: The Role of Governance Quality and Resource Misallocation

To what extent does state intervention in the market condition how individuals subjectively experience the lives that they lead? Prevailing attempts to understand the relationship between state intervention and subjective well‐being have yielded mixed empirical results. However, these differences result from omitted variable biases, not different methodological choices. Drawing on insights from the new social risk and quality of governance literatures, this article contends that the policy orientation and administrative quality of welfare state programs jointly condition the effect of state intervention on life satisfaction. State intervention exerts a strong positive effect on perceived satisfaction with life when the quality of administrative institutions is high and policy interventions focus on insuring individuals against newer, post‐industrial forms of market risk. This main hypothesis is tested and confirmed against an empirical analysis of survey data taken from Wave 5 of the World Values Survey.Related Articles:Flavin,Patrick,AlexanderPacek, andBenjaminRadcliff.2011. “.”Politics & Policy39():251‐269.http://onlinelibrary.wiley.com/doi/10.1111/j.1747‐1346.2011.00290.x/abstractDekker,Fabian.2010. “.”Politics & Policy38():765‐788.http://onlinelibrary.wiley.com/doi/10.1111/j.1747‐1346.2010.00257.x/abstractAriely,Gal.2011. “.”Politics & Policy39():997‐1019.http://onlinelibrary.wiley.com/doi/10.1111/j.1747‐1346.2011.00329.x/abstractRelated Media:Film Clips:.2009. “.”http://www.stiglitz‐sen‐fitoussi.fr/en/index.htmVeenhoven,Ruut.2013. “.”http://www1.eur.nl/fsw/happiness/

Government quality, auditor choice and adoption of IFRS: A cross country analysis

We examine the association between country-level government quality and firms' choice of external auditors. Using a cross-sectional sample of 142,193 firm-year observations from 46 countries over 1998–2007, we show that the government quality of a country has a significant positive effect on the likelihood of choosing Big 4 auditors by firms in that country. We also show that firms in countries with strong governments that have adopted IFRS are more likely to choose Big 4 than non-Big 4 auditors. To our knowledge, this is the first study of its kind to provide direct evidence on the role of government quality in firms' choice of external auditors. Choice of a Big 4 auditor may be regarded as a proxy for the demand for high quality financial reporting, and thus the results provide insights for policy makers on the importance of government quality toward improving financial reporting quality in a country.

Government Quality, the Adoption of IFRS and Auditor Choice: A Cross Country Analysis

We examine the association between country-level government quality and firms’ choice of external auditors. Using a cross-sectional sample of 142,193 firm-year observations from 46 countries over 1998-2007, we show that the government quality of a country has a significant positive effect on the likelihood of choosing Big 4 auditors by firms in that country. We also show that firms in countries with strong governments that have adopted IFRS are more likely to choose Big 4 than non-Big 4 auditors. To our knowledge, this is the first study of its kind to provide direct evidence on the role of government quality in firms’ choice of external auditors. Choice of a Big 4 auditor may be regarded as a proxy for the demand for high quality financial reporting, and thus the results provide insights for policy makers on the importance of government quality improving financial reporting quality in a country.

Government Quality, the Adoption of IFRS and Auditor Choice: A Cross Country Analysis

We examine the association between country-level government quality and firms’ choice of external auditors. We use a firm’s choice of a Big 4 auditor as a proxy for the demand for high-quality financial reporting. Using a cross-sectional sample of 142,193 firm-year observations from 46 countries over 1998-2007, we show that government quality of a country has a significant positive effect on the likelihood of choosing Big 4 auditors by firms in that country. We also show that firms in countries with strong governments that have adopted the IFRS are more likely to choose Big 4 than non-Big 4 auditors. To our knowledge, this is the first study of its kind to provide direct evidence on the role of government quality in firms’ choice of external auditors. The results provide insights for policy makers on the importance of government quality toward improving financial reporting quality in a country.