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Governance matters, Volume 1
Author:Kaufmann, Daniel; Kraay, Aart; Zoido-Lobaton, Pablo; Date Stored:2005/12/30
Document Date:1999/10/01Document Type:Policy Research Working Paper
SubTopics:Economic Policy, Institutions and Governance; Non Bank Financial Institutions; Insurance & Risk Mitigation; Insurance Law; Financial IntermediationLanguage:Russian
Major Sector:(Historic)MultisectorReport Number:WPS2196
Sub Sectors:Non-Sector SpecificCollection Title:Policy, Research working paper ; no. WPS 2196
Volume No:1  

Summary: In a cross-section of more than 150 countries, the authors provide new empirical evidence of a strong causal relationship from better governance to better development outcomes. They base their analysis on a new database containing more than 300 governance indicators compiled from a variety of sources. They provide a detailed description of each of these indicators and sources. Using an unobserved components methodology (described in the companion paper by the same authors, "Aggregating Governance Indicators," Policy Research Working Paper 2195), they then construct six aggregate indicators corresponding to six basic governance concepts: voice and accountability, political instability and violence, government effectiveness, regulatory burden, rule of law, and graft. As measured by these indicators, governance matters for development outcomes.

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