Open AccessThe Effects of Governance on Economic Growth
Author(s) -
Arafet Hamida,
Tahar Lassoued,
Zouhair Hadhek
Publication year - 2020
Publication title -
economics, politics and regional development
Language(s) - English
Resource type - Journals
eISSN - 2690-3474
pISSN - 2690-3466
DOI - 10.22158/eprd.v1n2p34
Subject(s) - corporate governance , politics , economic freedom , investment (military) , economics , economic governance , work (physics) , field (mathematics) , economic system , political science , market economy , finance , law , mechanical engineering , engineering , mathematics , pure mathematics
In this article, we are interested in a very topical issue—to what extent and through which channels can governance influence the economic growth of nations? To answer this question, we reviewed the literature in this field before embarking on the empirical analysis. The main results that we obtained from this research work stipulate that economic governance, approximated by “economic freedom”, has a positive effect on economic growth through its effect on investment. As regards political governance, it seems that it has no effect on economic growth. This reinforces the idea that the role of political institutions is limited to the creation of good economic institutions.