Governance Matters

ArXiv ID: ssrn-188568 “View on arXiv”

Authors: Unknown

Abstract

Six new aggregate measures capturing various dimensions of governance provide new evidence of a strong causal relationship from better governance to better deve

Keywords: corporate governance, institutional reform, economic development, governance metrics, Corporate Governance

Complexity vs Empirical Score

• Math Complexity: 3.0/10
• Empirical Rigor: 6.0/10
• Quadrant: Street Traders
• Why: The paper uses an unobserved components methodology and a large cross-country dataset, indicating solid empirical rigor and data handling, but the math is primarily statistical and econometric, not dense or highly advanced.

  flowchart TD
    Q["Research Question: Does governance quality causally drive economic development?"] --> I["Inputs: New aggregate governance indices; panel data on development"]
    I --> M["Methodology: Instrumental variable and panel data analysis"]
    M --> C["Computation: Regressing development on governance, controlling for fixed effects & endogeneity"]
    C --> F["Outcomes: Strong causal link from better governance to better economic development"]