Governance Quality Indicator: A Necessarily Local Approach of Calculation
Keywords:Standard governance indicators, Local governance indicator, public governance quality and economic growth
AbstractThe revolution in the Arab world shows that governance variables are as important as are theclassical variables (capital and labour). The denial of political rights, respect of lows andaccountability leads to inefficiency and low rate of economic growth in the long run. Over thelast 15 years, most of the World Bank studies have focused on development of standardsgovernance indicators which do not take into consideration the realities of developing countriessuch as Tunisia. Many countries have adopted these indicators to measure their governancequality. Yet none, to our knowledge, has attempted to define its local governance indicators. Thepurpose of this study is to show the need for developing a local governance indicator. Thefollowing variables have been selected: contract intensive money, foreign direct investment,scientific and technical articles produced and budgetary policy of the State to elaborate a localgovernance indicator.Our results indicate that governance variables affect economic growth. According to ourresults, improving the financial sector, scientific research and State spending policy can enhanceeconomic growth.
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