Governance, Openness, and Economic Performance in Asia

Abstract

The relationship between governance, openness and economic performance of a country has been a topic of significant interest not only among scholars, but also policymakers in all countries around the world. The objectives of this study are: first, to examine the relationship between governance, openness and economic performance in the context of Asia; second, to examine how well the relationship between each composite index of governance, openness and economic performance is.

This study utilizes a quantitative method and using cross-national data from selected Asia countries over the period from 1996-2012. The quantitative analysis includes descriptive statistics, correlation analysis, and multiple regression analysis. These methods are used to examine the causal relations between variables proposed in the conceptual framework.

The results revealed that voice and accountability, trade openness, and financial openness can increase economic growth. Regulatory quality can reduce national poverty rates. Conclusion, governance and openness have positive effect on economic performance that means great governance and high openness can achieve economic performance.

Keywords: governance, openness and economic performance