Governance’s Role in Business Environment of Visegrad Group / Maghreb Countries
Keywords:
Governance, Business environment, Ease of doing business, Worldwide Governance Indicators, Visegrád Group, Maghrebcountries
Abstract
This paper focuses on identifying, conceptualizing, and explaining good governance in Visegrád Group (Czech Republic, Hungary, Poland and Slovakia) and Maghreb countries (Algeria, Libya, Mauritania, Morocco and Tunisia). In addition, the research is an attempt to investigate the relationship between the good governance and the business environment in these zones by creating a Pearson correlation between the six indicators of good governance and the score of ease of doing business. This research aims to examine the importance of the indicators of rule of law, political stability, control of corruption, voice and accountability, regulatory quality, and government effectiveness to implement an attractive business environment in these two regions using a regression analysis. The empirical data were collected from the Worldwide Governance Indicators (WGI) (1996–2020) and Doing Business Report (2015 – 2020), World Bank. This paper represent an argument for the relevance of governance indicators on the business environment which was justified by a strong correlation near to 1 for all the indicators. As a general perception, an attractive business environment will be one of the most important results of the existence of good governance. The second objective is to prove the relevance of governance quality for the ease of doing business in order to achieve the development for both regions.
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References
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36. Rhodes, R.A.W. (1994). ‘The Hollowing Out of the State: The Changing Nature of the PublicService in Britain’, The Political Quarterly, vol. 65, no. 2, pp. 138-151.
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38. Rodrik, D. (2012). ‘TFPG Controversies, Institutions, and Economic Performance in East Asia’,NBER Working Paper Series, No. 5914, February 1997, [Online] available at http://www.nber.org/papers/w5914.pdf?new_window=1, accessed on October 11.
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40. Tanzi, V. & Davoodi, H. (1997). ‘Corruption, Public Investment and Growth’, IMF WorkingPaper No. WP/97/139, October, [Online] available at http://www.imf.org/external/pubs/ft/wp/wp97139.pdf, accessed on October 11, 2012.
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42. Van Rijckeghem, C. & Weder, B. (2012). ‘Corruption and the Rate of Temptations: Do Low
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http://www.imf.org/external/pubs/ft/wp/2011/wp1112.pdf, accessed on February 11, 2013.
2. Andrews, M. (2008). ‘The Good Governance Agenda: Beyond Indicators without Theory’, Oxford Development Studies, vol. 36, no. 4, pp. 379-407.
3. Bardhan, P. (2002). ‘Decentralization of Governance and Development’, Journal of Economic Perspectives, vol. 16, no. 4, pp. 185-205.
4. Bovaird, T. & Löffler, E. (2003). ‘Evaluating the Quality of Public Governance: Indicators,Models and Methodologies’, International Review of Administrative Sciences, vol.69, no. 3, pp. 313-328.
5. Brautigam, D. (1991). World Bank, Policy and Review Department, ‘Governance and Economy: A Review’, [Online] available at http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1991/12/01/000009265_3961002050636/Rendered/PDF/multi0page.pdf, accessed on October 10, 2012.
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7. Çule, M. & Fulton, M.E. (1995). ‘Corporate Governance and Subjective Well-Being’, Applied Economics Letters, vol. 20, no. 4, pp. 364-367.
8. Friedman, E., Johnson, S., Kaufmann, D. & Zoido-Lobaton, P. (2000). ‘Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69 Countries’, Journal ofPublic Economics, vol. 76, no. 3, pp. 459-493.
9. Gani, A. & Duncan R. (2007). ‘Measuring Good Governance Using Time Series Data: FijiIslands’, Journal of the Asia Pacific Economy, vol. 12, no. 3, pp. 367-385.
10. Gray, J., McKevitt, D. & Lawton, A. (1994). ‘Limited Government’, in (eds.), Public SectorManagement, Theory, Critique and Practice, London: Sage, pp. 25-36.
11. Hall, R. E. & Jones, C. I. (1999). ‘Why Do Some Countries Produce So Much More Output perWorker than Others?’, Quarterly Journal of Economics, vol. 114, no. 1, pp. 83-116.
12. Helliwell, J. & Huang, H. (1999). ‘How’s Your Government? International Evidence LinkingGood Government and Well-Being’, British Journal of Political Science, vol. 38, no.4, pp. 595-619.
13. Hood, C., Dixon, R. & Beeston, C. (2008). ‘Rating the Rankings: Assessing International Rankings of Public Service Performance’, International Public Management Journal,vol. 11, no. 3, pp. 298-328.
14. Johnson, S., Kaufmann, D. & Zoido-Lobatón, P. (1998). ‘Regulatory Discretion and the Unofficial Economy’, American Economic Review, vol. 88, no. 2, pp. 387-392.
15. Kaufmann, D. & Kraay, A. (2008). ‘Governance Indicators: Where Are We, Where ShouldWe Be Going?’, World Bank Research Observer, vol. 23, no. 1, pp. 1-30, [Online]available at http://siteresources.worldbank.org/INTWBIGOVANTCOR/Resources/KKGovernanceIndicatorsSurveyWBROSpring2008.pdf, accessed on October 12, 2012.
16. Kaufmann, D., Aart, K. & Mastruzzi, M. (1996-2004). ‘Governance Matters IV: Governance Indicators for’, World Bank Policy Research Working Paper Series No. 3630,Washington, D.C.: The World Bank, 2005.
17. Kaufmann, D., Kraay, A. & Zoido-Lobatón, P. (1999). ‘Aggregating Governance Indicators’,World Bank Policy Research Working Paper No. 2195, The World Bank, a, [Online] available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=188548, accessedon October 11, 2012.
18. Kaufmann, D., Kraay, A. & Zoido-Lobatón, P. (1999). ‘Governance Matters’, World BankPolicy Research Working Paper No. 2196, The World Bank, b, [Online] available at http://info.worldbank.org/governance/wgi/pdf/govmatters1.pdf, accessed on October11, 2012.
19. Keefer, P. & Knack, S. (1997). ‘Why Don’t Poor Countries Catch Up? A Cross-national Testof an Institutional Explanation’, Economic Inquiry, vol. 35, no. 3, pp. 590-602.
20. Klijn, E. H. (2008). ‘Governance and Governance Networks in Europe’, Public Management Review, vol. 10, no. 4, pp. 505-525.
21. Knack, S. & Keefer, P. (1995). ‘Institutions and Economic Performance: Cross-Country TestsUsing Alternative Institutional Measures’, Economics and Politics, vol. 7, no. 3, pp.207-227.
22. Kooiman, J. (1999). ‘Social-Political Governance’, Public Management: An InternationalJournal of Research and Theory, vol. 1, no. 1, pp. 67-92.
23. Kooiman, J. (2003). Governing as Governance, London: Sage.
24. Kraay, A. & Tawara, N. (2010). ‘Can Disaggregated Indicators Identify Governance ReformPriorities?’, World Bank Policy Research Working Paper No. 5254, The World BankDevelopment Research Group.
25. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. & Vishny, R. (1999). ‘The Quality of Government’, The Journal of Law, Economics, and Organization, vol. 15, no. 1, pp. 222-279.
26. Landell-Mills, P. & Serageldin, I. (1991). ‘Governance and the External Factor’, Proceedingsof the World Bank Conference on Development Economics, Washington, D.C.: TheWorld Bank.
27. Mauro, P. (1995). ‘Corruption and Growth’, Quarterly Journal of Economics, vol. 110, no.3, pp. 681-712.
28. May, J.W., Pyle, W. & Sommers, P. M. (2002). ‘Does Governance Explain Unofficial Activity?’, Applied Economics Letters, vol. 9, no. 8, pp. 537-539.
29. Neumayer, E. (2002). ‘Is Good Governance Rewarded? A Cross-national Analysis of DebtForgiveness’, World Development, vol. 30, no. 6, pp. 913-930.
30. Ngobo, P.V. & Fouda, M. (2012). ‘Is ‘Good’ Governance Good for Business? A Cross-national Analysis of Firms in African Countries’, Journal of World Business, vol. 47, no.3, pp. 435-449.
31. Osborne, D. & Gaebler, T. (1992). Reinventing Government. How the Entrepreneurial Spirit IsTransforming the Public Sector, Reading, MA: Addison-Wesley.
32. Özler, S. &Rodrik, D. (1992). ‘External Shocks, Politics and Private Investment: Some Theory and Empirical Evidence’ , Journal of Development Economics, vol. 39, no. 1, pp.141-162.
33. Perotti, R. (1996), ‘Growth, Income Distribution, and Democracy: What the Data Say’, Journal of Economic Growth, vol. 1, no. 2, pp. 149-187.
34. Polidano, C. (2000). ‘Measuring Public Sector Capacity’, World Development, vol. 28, no.5, pp. 805-822.
35. Price, R., Román, F.J. & Rountree, B. (2011). ‘The Impact of Governance Reform on Performance and Transparency’, Journal of Financial Economics, vol. 99, no. 1, pp. 76-96.
36. Rhodes, R.A.W. (1994). ‘The Hollowing Out of the State: The Changing Nature of the PublicService in Britain’, The Political Quarterly, vol. 65, no. 2, pp. 138-151.
37. Rhodes, R.A.W. (1997). Understanding Governance. Policy Networks, Governance, Reflexivity andAccountability, Buckingham: Open University Press.
38. Rodrik, D. (2012). ‘TFPG Controversies, Institutions, and Economic Performance in East Asia’,NBER Working Paper Series, No. 5914, February 1997, [Online] available at http://www.nber.org/papers/w5914.pdf?new_window=1, accessed on October 11.
39. Sacio-Szymańska, A., Kononiuk, A., Tommei, S. et al. (2016). The future of business in Visegrad region. Eur J Futures Res 4, https://doi.org/10.1007/s40309-016-0103-3.
40. Tanzi, V. & Davoodi, H. (1997). ‘Corruption, Public Investment and Growth’, IMF WorkingPaper No. WP/97/139, October, [Online] available at http://www.imf.org/external/pubs/ft/wp/wp97139.pdf, accessed on October 11, 2012.
41. Van de Walle, S. (2006). ‘The State of the World’s Bureaucracies’, Journal of ComparativePolicy Analysis: Research and Practice, vol. 8, no. 4, pp. 437-448.
42. Van Rijckeghem, C. & Weder, B. (2012). ‘Corruption and the Rate of Temptations: Do Low
43. Wages in the Civil Service Cause Corruption’, (1997). IMF Working Paper No. WP/97/73, [Online] available at http://www.imf.org/external/pubs/ft/wp/wp9773.pdf, accessed on October 11, 2012.
44. Wei, S. J. (1997).‘How Taxing is Corruption on International Investors?’, NBER Working Paper Number 6030, May [Online] available at http://www.nber.org/papers/w6030.pdf?new_window=1, accessed on October 11, 2012.
45. Weintraub, J. & Kumar, K. (1997). (eds.), Public and Private in Thought and Practice. Perspectives on a Grand Dichotomy, Chicago: The University of Chicago Press.
46. World Bank (2003). Better Governance for Development in the Middle East and North Africa: Enhancing Inclusiveness and Accountability. MENA Development Report;. Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/15077 License: CC BY 3.0 IGO.”
47. World Bank and International Finance Corporation (2012). ‘Doing Business in a More Transparent World’, [Online] available at http://www.doingbusiness.org/reports/global-reports/doing-business-2012, accessed on October 17, 2012.
48. World Bank (1992). ‘Governance and Development’, [Online] available at http://wwwwds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1999/09/17/000178830_98101911081228/Rendered/PDF/multi_page.pdf, accessed on October 10, 2012.
49. World Bank (1994). ‘Governance. The World Bank’s Experience’, [Online] available athttp://wwwwds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1994/05/01/000009265_3970716142854/Rendered/PDF/multi0page.pdf, accessed on October10, 2012.
50. World Bank (2006). ‘Strengthening Bank Group Engagement on Governance and Anticorruption’, September [Online] available athttp://siteresources.worldbank.org/DEVCOMMINT/Documentation/21046515/DC2006-0017(E)-Governance.pdf, accessed onOctober 12, 2012.
51. World Bank (2012). Country and Lending Groups (data set), July [Online] availableat http://data.worldbank.org/about/ country-classifications/ country-and-lendinggroups#Low_income, accessed on October 16, 2012.
52. World Bank (2015). Doing Business reports available athttps://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB15-Full-Report.pdf
53. World Bank (2020). Doing Business reports available athttps://documents1.worldbank.org/curated/en/688761571934946384/pdf/Doing-Business-2020-Comparing-Business-Regulation-in-190-Economies.pdf
54. World Bank (2020). The Worldwide Governance Indicators (WGI) project, 1996-2020, [Online] available at http://info.worldbank.org/governance/wgi/Home/Documents
Published
2022-06-30
How to Cite
Bouhlel, S. (2022). Governance’s Role in Business Environment of Visegrad Group / Maghreb Countries. European Scientific Journal, ESJ, 18(19), 1. https://doi.org/10.19044/esj.2022.v18n19p1
Section
ESJ Social Sciences
Copyright (c) 2022 Sofian Bouhlel
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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