Impact of Good Governance on Human Development: Empirical Analysis from Cis Countries

Abstract

The effect of governance indicators on the level of human development in CIS countries for the period 2000 to 2017 is examined throughout the paper. The effects are analyzed by using Panel Data Regression Method. The paper is based on the most recent data of WGI and HDI from the World Bank and UNDP, respectively. The findings of the study on the impact of Good Governance on HDI in the case of CIS countries suggest that four measures of Good Governance by WGI showed a strong positive correlation and trend with HDI. Governance indicators, namely, Political Stability and Absence of Violence, Regulatory Quality, Rule of Law, and Control of Corruption, are statistically significant at 5, 1, 1, and 1 percent significance level respectively, and has a strong positive relationship with the HDI. Among them, Control of Corruption found to have a highly significant and the strongest positive correlation with HDI. The governance indicator Voice and Accountability has shown a negative and significant relationship with HDI. Government Effectiveness has shown a positive but insignificant result. The results yield the lessons for CIS countries that Good Governance in particular; Political Stability and Absence of Violence, Regulatory Quality, Rule of Law, and Control of Corruption are essential components of the development process and are necessary for improved performance in development. It is recommended that the governments of CIS countries should strengthen and improve the quality of governance to achieve development goals.