| Pub. Date | : Jan, 2020 |
|---|---|
| Product Name | : The IUP Journal of Applied Economics |
| Product Type | : Article |
| Product Code | : IJAE110120 |
| Author Name | : Sakshi Malik, Cheshta Kapuria |
| Availability | : YES |
| Subject/Domain | : Economics |
| Download Format | : PDF Format |
| No. of Pages | : 21 |
In view of the growing importance of good governance as an accelerator of sustainable development, it becomes indispensable to study its determinants. The present paper empirically analyzes the impact of globalization and other macroeconomic variables on the quality of a country's governance. For this purpose, the paper has applied panel Ordinary Least Squares (fixed effects and random effects) and two-step system Generalized Method of Moments (GMM) on a panel dataset of 14 emerging Asian countries, namely, Bangladesh, Bhutan, Cambodia, India, Indonesia, Lao PDR, Mongolia, Myanmar, Pakistan, Philippines, Sri Lanka, Timor- Leste, Uzbekistan, and Vietnam. The econometric analysis is conducted for the period 2005-2017. In general, the results indicate that social and political globalization, urbanization, and information and communication technology infrastructure influence governance favorably, while per capita growth and government consumption have no significant impact on the country's level of governance. A pertinent finding of the paper is that social globalization coupled with economic globalization can lead to an improved level of governance. Thus, improved quality of governance can be attained by blending cultural integration with capital flows. A key contribution of the paper is that it analyzes the impact of various aspects of globalization-economic, political and social-on the level of governance in emerging Asian countries.
While the concept of governance is as old as human civilization, it became widely used in political development studies and public policy documents in the late 1980s (Afegbuaand and Adejuwon, 2012), when the idea of governance was re-launched as 'good governance' (Doornbos, 2001). Since then, good governance has been considered as a key solution to tackle failures arising in development policies as a result of poor governance concerns (Kumar, 2003; Dixit, 2009; and Bhargava, 2015). While governance in the simplest form is defined as the "process of decision making and the process by which the decisions are implemented"