Growth and Governance Nexus in Selected Asian Countries

Abstract

The aim of this study is to evaluate the primary association among economic growth and governance indicators from 2002 to 2011 in selected 27 Asian countries. World Wide Governance Indicators (2012) are used in the study. Growth and governance are interrelated to demonstrate the economic position of economies. Governance is a strapping source to enhance economic growth especially in developing economies. The governance pattern looks for to increase the efficiency of economies. Principal Component Analysis (PCA) is used to develop governance index. Pooled OLS, 2SLS, 3SLS and GMM techniques are used in the study. The results of techniques show that variable LGV has no significant role in per capita GDP.