How Good Government Governance Affect the Economic Growth? An Investigation on Selected Country around the World

Abstract

Good governance has become an important factor in economic growth. Good governance will become one of the UN's Millennium Development Goals. This study aims to show whether indicators of good government governance can affect the economic growth of a country so that the country can control economic growth through its governance. The Economic Growth and The governance indicators which drawn by Worldwide Governance Indicators for 2015-2019. The study covered 73 countries and it adopted the panel data framework the fixed effect, the random effect and the maximum likelihood estimation techniques for the analyses. The results shows that the voice and accountability have negative effect. Variable government effectiveness and rule of law have positive effect. Meanwhile, the political stability, regulatory quality, and control of corruption variables had no effect on economic growth. The study suggest for further researchers to provide other variables and expand research time.