Governance, openness, and economic performance : an empirical study of Asia and Sub-Saharan Africa

Abstract

The relationship between governance, openness, and economic performance of a country has been a topic of significant interest, not only among scholars but also policymakers in all countries around the world. The objectives of this study were: first, to examine the relationship between governance, openness, and economic performance in the context of developing countries; second, to examine how each factor makes a difference in the way in which countries develop; and third, to examine the differences in the relationships among governance, openness, and economic performance in Asia and Sub-Saharan Africa (SSA).

This study utilized a quantitative method, using cross-national data from selected developing countries over the period from 1996-2012. The countries investigated in this study were selected from developing countries in Asia and SSA. The quantitative analysis included descriptive statistics, correlation analysis, and multiple regression analysis. These methods were used to examine the causal relations between the variables proposed in the conceptual framework.

The results from the case of developing countries conclude that government effectiveness, control of corruption, and trade openness can achieve economic growth. In additional, rule of law can reduce income inequality. In the case of Asia, voice and accountability and both of financial openness and trade openness can increase economic growth. Regulatory quality can reduce national poverty rates. In the case of SSA show that voice and accountability, government effectiveness, and trade openness can achieve economic growth. Political stability can reduce national poverty rates and increase income equality. This study, therefore, explored the policy implications of the findings.