The impact of governance on economic growth: spatial econometric approach

Purpose This paper investigates the impact of governance on economic growth, considering spatial dependence between countries. Design/methodology/approach The study employs regression models to estimate growth in a sample 116 countries worldwide 2017. Findings findings imply that influence is statistically significant. Moreover, if all other control variables are constant, 1% increase raises average by at 10%, 5% and significance levels, respectively. Furthermore, each country's rise favorably substantially influences its bordering nations. unobserved characteristics or similar environments adjacent also affect growth. Originality/value adds discussion investigation countries, which lacking literature.