The impact of good governance as an moral indicator on economic growth

In the years before World War II, the concept of good governance was less used. But during the 1980s, a new concept has emerged that more than of government notes. Indeed, good governance is a broad concept that encompasses the participation of government institutions, civil society and the private sector. All three sections are essential for sustainable human development. Political and legal environment creates fertile state, private sector and civil society engagement creates employment and income, political and social activist groups to participate in economic activities, facilitate social and political.
Indicators of good governance are the work of three researchers at the World Bank's Daniel Kaufmann, Art rental Zvydv Pablo Lvbatvna. These researchers, on the basis of the findings of various international institutions such as the Heritage Foundation and Freedom House about the economic, political and social subjects, has introduced new indices as indicators of governance. The World Bank's presents the good governance on the base of six indicators.
In this study, using the eviews 6 software package and ordinary least squares method to evaluate the effect of good governance index on economic growth will be discussed. The data of indicator of good governance based on studies done by Mr. Kaufmann and others can be obtained from the World Bank. The economic growth statistics is offered via of the WDI source annually for all countries that is published by the World Bank, have been obtained.
Study period covers the years 2012-2000 .The results show that over time increase the quality of governance a five percent GDP growth for the countries studied and other variables can explain the three percent of changes of GDP growth rate.