مجلة المنتدى للدراسات والابحاث الاقتصادية
Volume 9, Numéro 2, Pages 605-622
2025-12-07

Measuring The Impact Of Governance On Economic Growth In Islamic Countries: A Principal Component Analysis And Fixed Effects Panel Approach With Driscoll–kraay Standard Errors

Authors : Bouatelli Mohamed .

Abstract

This study analyzes the impact of governance on economic growth in 57 Islamic countries during 2000–2023. Using six World Bank governance indicators, a composite governance index was built through Principal Component Analysis. The relationship with GDP per capita growth was then estimated using fixed effects panel models with Driscoll–Kraay robust errors. The results show that governance has a positive and significant effect on economic growth. Stronger institutions, political stability, and corruption control enhance economic performance. These findings suggest that improving governance is not only a political goal but also a key economic strategy for sustainable and inclusive development.

Keywords

Governance ; Governance Indicators ; Economic Growth ; Islamic Countries ; Panel Data

Smart Ml Integration For Sustainable Food Security: A Driscoll-kraay Approach

Kaleem Sobia .  Khursheed Nazia .  Jamal Qasim . 
pages 349-365.