The Impact of Good Governance on Economic Growth in Selected Islamic Countries (Panel Data Approach)

The measure of economic growth of any country shows the standard of living and welfare of the society, therefore, access to the way to increase economic growth is considered one of the important categories for the economy of any country, which has been taken different categories into consideration for the increase in economic growth, which is one of the most important is the government. Since several decades, the category of good governance, which is synonymous with the government, it has been taken into consideration. In this research, the effect of the good governance index upon economic growth in selected Islamic countries in the period of time 2010 to 2019 has been investigated by using the panel data method. The results of the model show that the good governance index in selected Islamic countries has a positive effect on economic growth in such a way that with one percent increase in the good governance index, economic growth increases at 0.01 percent. As for the role of labor productivity and foreign direct investment in the economic prosperity of countries of economic and political policy makers to orientation of production should increase the skill of the human force and improve the ecosystem of the country's foreign direct investment, promote political and economic stability, increase efficiency and effectiveness of governments, conformation the rule of law, control corruption and increase the right of citizens to express their opinions on various matters of the country in their agenda in order to achieve desired goals and results.