The impact of public governance on the economic growth: Evidence from gulf cooperation council countries

Abstract

This study aims to examine how public governance impacts and affects economic growth in the Gulf Cooperation Council (GCC) which was established on 25th May 1981 and is active till to date, and whether public governance indicators significantly influence the economic growth of these countries. The study's sample includes the six GCC countries in the period of 1996-2019. The study model tests the effects of the independent variables of public governance which are the worldwide governance indicators on the dependent variables of economic growth which are the Gross Domestic Product (annual GDP growth in %), GDP per capita growth (annual in %) and GDP current US$) using a multiple regression model (the fixed effect approach). In this study, only four worldwide governance indicators were selected: the control of corruption, government effectiveness, regulatory quality, and the rule of law. Furthermore, this impact was examined using several control variables, including labor force, working capital, oil price, inflation rate, population, and Human Development Index. The data on dependent and independent variables was collected from the World Bank official website. It is found that the control of corruption and the rule of law have a positive, statistically insignificant impact on economic growth, moreover, government effectiveness and regulatory quality have positive, statistically significant impact on economic growth. The control variable's results concern the labor force, working capital, oil price, inflation rate, population and Human Development Index explained further in the study.

Influence of Governance Components on Economic Growth in Tanzania

“…The positive coefficient suggests that a one percent increase in government effectiveness enhances Tanzania's economic growth by 1.485 percent assuming all other parameters remain constant. The findings support the underlying hypothesis of the study as well as other studies that have indicated that government effectiveness is positively associated to development (Al-Naser, 2021;Nsiah & Fayissa, 2013;Adzima, 2019;Afolabi, 2019;Azimi, 2020).…”

“…The findings support the study's prior hypothesis as well as other research that showed political stability, voice and accountability, rule of law, and government effectiveness to be positively associated with development (Teke, 2012;Afolabi, 2019;Adenuga, 2013). Therefore, government efficacy has a favorable and considerable impact on Tanzania's economic growth (at a 5% level) (Al-Naser, 2021;Nsiah & Fayissa, 2013;Adzima, 2019;Afolabi, 2019;Azimi, 2020). The positive coefficient suggests that a one percent increase in government effectiveness enhances Tanzania's economic growth by 1.485 percent assuming all other parameters remain constant.…”

Relationship between the level of human development and institutional quality

“…Evidence of the substantial impact of the shadow economy on human development, including its economic dimension valued by GDP, is available in the research of Mishchuk et al (2018), Navickas et al (2020). Some partial factors of social injustice, like corruption, violation of the role of the law, or obstacles to doing business are investigated in empirical studies fulfilled by Al-Naser & Hamdan (2021), Leal Rodríguez & Sanchís Pedregosa (2019. Arrording to (Wang et al, 2021) lack of social supports or even lower level of social support has a negative impact on the quality of life.…”

Country’s health profile: Social, economic, behavioral and healthcare determinants

“…Significant negative changes have taken place in the world economy (Tommaso, 2020), consumption (Minchenko & Demchuk, 2021), insurance (Hinrichs & Bundtzen, 2021), the green bond market (Keliuotytė-Staniulėnienė & Daunaravičiūtė, 2021), and business in general (Antonyuk, 2021;Tiutiunyk et al, 2021), healthcare (Androniceanu, 2020), the banking sector (Bernardelli et al, 2021), etc. That is why there is a need for a systematic restructuring of approaches to ensure the countries' readiness to combat and prevent mass diseases (Al-Naser & Hamdan, 2021;Dutta et al, 2020;Bilan et al, 2019). In this context, the study by researchers of determinants of the impact on the country's health profile formation is a priority.…”