The effect of good governance on income distribution in a selected group of Organization of Islamic Countries (OIC)

Good governance and income distribution are the key issues of public economy and development. According to the World Bank, good governance is identified by six characteristics: the right of expression and responsibility, political stability and the absence of violence, government efficiency, quality of laws and regulations, the rule of law and the control over corruption. This study aims to examine the effects of good governance on the index of income distribution (Gini coefficient) in a selected group of the Organization of Islamic Countries (OIC) during the period 2000-2013. In order to approach this key research objective, two research strategies have taken into account: First, we examine the effects of good governance on income distribution. Second, the effects of government revenues and expenditures are also examined. The results illustrate the key fact that on the index of income distribution (Gini coefficient) is significantly and negatively affected by almost all characteristics of good governance. This does not apply to the control over corruption and government revenues and expenditures, as these characteristics lead to unequal income distribution among this selected group of the Organization of Islamic Countries (OIC).