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Governance and Growth Revisited
Author(s) -
Seldadyo Harry,
Nugroho Emmanuel Pandu,
De Haan Jakob
Publication year - 2007
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.2007.00372.x
Subject(s) - index (typography) , corporate governance , variable (mathematics) , econometrics , construct (python library) , yield (engineering) , economics , latent variable , statistics , mathematics , computer science , finance , mathematical analysis , materials science , world wide web , metallurgy , programming language
SUMMARY Recent studies yield diverging outcomes on the governance‐growth relationship. In this paper we construct a new index of governance using a latent variable approach and test whether this index is related to growth with varying samples of countries and different conditioning variables. The results show that our index has a positive and significant impact on economic growth. This conclusion is fairly robust for various samples and conditioning variables.