Good Governance and Doing Business: Evidence from a Cross-Country Survey

Cristina BOŢA-AVRAM

Abstract


The aim of this cross-country empirical analysis is to investigate the relationship between good governance, measured through six clusters of governance developed by the World Bank, and the quality of business environment, captured through the ranking on the ease of doing business, also assessed by the World Bank. This paper analyzes the influence of governance indicators on the ease of doing business using a classification of economies of all countries with population of more than 30,000 citizens, divided on income groups such as low income, lower middle income, upper middle income, high income non-OECD and high income OECD. The findings show the significant influence of some governance indicators such as ‘government effectiveness’ or ‘regulatory quality’ on the ease of doing business, for all countries, while ‘the rule of law’ and ‘control of corruption’ are very determining factors for the business environment especially for countries classified in high income categories. Moreover, this paper could represent an argument for the relevance of governance quality for the ease of doing business, highlighting the necessity to pay enough attention to ensuring good governance in order to provide effective development outcomes.


Keywords


governance; ease of doing business; government effectiveness; regulatory quality; rule of law; control of corruption.

Full Text:

PDF
Creative Commons License
Transylvanian Review of Administrative Sciences by TRAS is licensed under a Creative Commons Attribution 4.0 International License.
Based on a work at http://rtsa.ro/tras/


Online ISSN: 2247-8310 | Print ISSN: 1842-2845 |  © AMP

The opinions expressed in the texts published are the author’s own and do not necessarily express the views of TRAS editors. The authors assume all responsibility for the ideas expressed in the materials published.