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Factors Affecting Good Governance in Pakistan

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Factors Affecting Good Governance in Pakistan
European Journal of Scientific Research ISSN 1450-216X Vol.35 No.3 (2009), pp.337-346 © EuroJournals Publishing, Inc. 2009 http://www.eurojournals.com/ejsr.htm

Factors Affecting Good Governance in Pakistan: An Empirical Analysis
Imran Sharif Chaudhry Associate Professor, Department of Economics Bahauddin Zakariya University Multan, Pakistan E-mail: imranchaudhry@bzu.edu.pk Shahnawaz Malik Professor and Chairman, Department of Economics Bahauddin Zakariya University Multan, Pakistan E-mail: shahnawazmalik@bzu.edu.pk Khurram Nawaz Khan PhD Scholar, Department of Economics Bahauddin Zakariya University Multan, Pakistan Sohail Rasool PhD Scholar, Department of Economics Bahauddin Zakariya University Multan, Pakistan Abstract Good governance is the significant issue of sustainable economic development among others. The concept of good governance has gained significant attention in the world and especially in Pakistan in the last decade. Since there are few theoretical studies on this issue in Pakistan, this paper analyzes the impact of some significant macroeconomic variables on good governance using time series data for empirical analysis. In this paper, democracy, economic openness, population size, peace years, unemployment, exchange rate, budget deficit, life expectancy and educational levels are considered the major macroeconomic determinants of good governance. We have employed the concept of stationarity to solve the by using Augmented Dickey Fuller (ADF) test. By conducting the time series regression analysis, we found that the stated variables are affecting the degree of good governance according to their levels. Keywords: Governance; Rule of law; Government effectiveness; Corruption; Time Series Econometrics; Pakistan

I. Introduction
Good governance has gained significant attention in the world especially in the last decade. In recent years, good governance has attracted the attention of economists, political scientists, lawyers, politicians, national

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