An Application of Rules of Governance and Economic Growth: A Case Study o f Asian Countries

Abstract

This study attempts to investigate the impact of governance indicators on economic growth some of the selected Asian countries. The governance data was selected for world governance indicator 2016 and Real GDP data was drawn from the World Bank database. The study covered the 21 Asian countries and chose the panel data approach, feasible generalized least square model. This study found that if we spend more on political stability, government effectiveness will increase the output. The results also give evidence that corruption has a negative relationship with growth. It also concludes that accountability and law & order have a significant impact on overall economic growth. The study suggests the policy that, to enhancing growth, rule of governance must be strong.