The Governance Quality-Growth Nexus Revisited: A New Evidence From The Bayesian Multilevel Generalized Linear Model

Abstract

Many empirical studies have been conducted so far on economic growth in the world. In these studies, the effect of various elements on the economic growth, such as public expenditure, inflation, labor, private investment, etc., has been examined. In this study, the effect of governance on the economic growth in 43 Asian countries is considered during the period from 2004 to 2016. Using the Bayesian multilevel generalized linear model, it is estimated that governance has a positive impact on economic growth with a probability of more than 80%. Based on this, policy implications are provided for improving the governance quality to promote economic growth.