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Policy Research Working Papers 2196 : Governance Matters

By Kaufmann, Daniel

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Book Id: WPLBN0000010757
Format Type: PDF eBook
File Size: 1.0 MB
Reproduction Date: 2005
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Title: Policy Research Working Papers 2196 : Governance Matters  
Author: Kaufmann, Daniel
Language: English
Subject: Economics, Finance & business, World Bank.
Collections: Economics Publications Collection
Publication Date:
Publisher: The World Bank


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Kaufmann, D. (n.d.). Policy Research Working Papers 2196 : Governance Matters. Retrieved from


Summary findings In a cross-section of more than 150 countries, Kaufmann, Kraay, and Zoido-Lobaton provide new empirical evidence of a strong causal relationship from better governance to better development outcomes. They base their analysis on a new database containing more than 300 governance indicators compiled from a variety of sources. They provide a detailed description of each of these indicators and sources. Using an unobserved components methodology (described in the companion paper by Kaufmann, Kraay, and Zoido- Lobaton, ?Aggregating Governance Indicators,? Policy Research Working Paper 2195), they then contruct six aggregate indicators corresponding to six basic governance concepts: voice and accountability, political instability and violence, government effectiveness, regulatory burden, rule of law, and graft. As measured by these indicators, governance matters for development outcomes.


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