THE NEXUS BETWEEN GOVERNANCE QUALITY AND ECONOMIC GROWTH: UNPACKING THE ROLE OF CORRUPTION IN EMERGING MARKETS
DOI:
https://doi.org/10.61506/Keywords:
Governance quality, corruption control, economic growth, emerging markets, Sub-Saharan Africa, MENA, foreign direct investment, panel data, Generalized Method of Moments (GMM), policy implicationsAbstract
In the essay, there will be an analysis relating to anti-corruption, good governance and growth in the emerging economies. Using panel data from a range of Sub-Saharan African and MENA (Middle East and North Africa) countries, the research examines how variations in public governance and perceptions of corruption influence economic performance over time. The paper employs advanced econometric methods, including Generalised Method of Moments (GMM) and panel regressions, to mitigate issues of Endogeneity and heterogeneity. It has, however, found that there is a robust positive Correlation that exists between good governance and economic growth, and the existence of corruption is a maleficent variable in the Correlation process. Additionally, foreign direct investment (FDI) and population growth are identified as key drivers of economic development. The other notions of necessity that need to be discussed in the paper are that there is a dire need to enhance the structures of governance and minimize corruption so as to achieve a sustained growth in emerging economies, which has significant policy implications for policymakers in the affected regions.
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