Is national governance important for economic growth?
Thamara Marcos dos Santos et al.
What the paper says
There is a growing emphasis on the role of institutions in explaining countries’ economic growth. According to institutional theory, governance guidelines directly influence economic growth. This study examines the impact of national governance on the economic growth of countries that are members of Mercosur, the North American Free Trade Agreement (NAFTA), and the European Union. The sample comprises 39 countries and analyzes the period 2007-2021. The results indicate that, among governance indicators, the rule of law is the most significant factor in explaining GDP per capita growtr. The European Union is associated with higher levels of governance and medium to high levels of GDP per capita, whereas Mercosur is associated with intermediate governance levels and lower GDP per capita. In general, results show that national governance is important for economic growth; however, governance quality alone may not be sufficient. In addition to governance, fixed capital formation, inflation, and trade openness have significant effects on the economic growth of the countries analyzed.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.