The relationship between public governance and national performance: a theoretical and empirical analysis

Abstract

This article examines the link between good governance, economic development and social well-being. Good governance is defined as a set of practices and values that govern the processes of steering and direction and promote transparency, accountability, citizen participation, and the rule of law in the management of public affairs. Establishing an institutional framework that respects the principles of good governance is essential to create an environment conducive to economic and social development.

Several studies have been conducted to understand the dynamics that frame the relationship between good governance and economic and social performance. The results of these studies vary, with some supporting and proving the significance of a positive correlation between governance and economic growth, social well-being, and happiness. However, others qualify this impact and condition it on the existence of institutional, cultural, and economic prerequisites.

Through a comprehensive literature review, we have presented the theoretical and empirical foundations that form the basis of the relationship between good governance and economic and social performance. We conclude that this relationship is not fully demystified. It is complex and under-researched, thus requiring further exploration, especially regarding its social impact. In fact, we have highlighted that most empirical studies focus on the tangible facet of performance, particularly economic growth, while giving less attention to studies with social implications.

Key words: Good governance, public performance, economic development, social well-being.

Classification JEL : H83

Paper type : Theoretical Research.