The impact of strong and effective governance on government size in a group of developing countries for the period (2003-2022)
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Abstract
This research aims, in its theoretical framework, to identify the theoretical frameworks of government size and institutional quality, in addition to the reference review that addresses the nature of the relationship between good and strong wisdom and government size and explaining the mechanism of influence between them. As for its quantitative aspect, the research aimed to measure the impact of strong and effective institutions on government size for a group of countries represented by (40) developing countries during the time period (2003-2022). By using the EViews-13 software, dynamic analysis was used, represented by the Generalized Method of Moment (GMM) system capabilities. The research reached a set of conclusions, the most important of which are: The corruption control index has an inverse and significant effect, meaning that increasing the corruption control index by one point will lead to a decrease in the government size index by (-0.527) points. This is consistent with the essence of economic theory, as the more corruption is controlled and reduced in these countries through the policies adopted by these governments, this will be reflected in a decrease in the size of the government. The political stability index has an inverse and significant effect, meaning that an increase in the political stability index by one point will lead to a decrease in the government size index by (-0.365) points. These two indicators are the most clearly influential of the six governance indicators on the size of the government.
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