IS GOVERNANCE EFFECTIVE IN ECONOMIC GROWTH? EVIDENCE FROM MSCI COUNTRIES; EKONOMİK BÜYÜMEDE YÖNETİŞİM ETKİLİ Mİ? MSCI ÜLKELERİNDEN KANITLAR
In: Hitit Sosyal Bilimler Dergisi: Hitit journal of social sciences, Band 14, Heft 1, S. 41-55
ISSN: 2757-7449
The main objective of the research is to study the relationship between governance and economic development in emerging economies. We used MSCI countries as a sample due to their increasing importance. Our research is based on the World Bank data for Worldwide Governance Indicators (WGI) of observed countries from 2002 to 2018. The Principal Component Analysis (PCA) and Generalized Method of Moments (GMM) were applied to identify the relationship between the GDP index as a dependent variable and the WGI as an independent variable and other control variables. The experimental results showed that there was no significant relationship between governance and economic development. On the basis of these findings, it is emphasized that the countries in the sample should give more importance to governance.