A model to explain the impact of government revenue on the quality of governance and the SDGs
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Date
Authors
Hall, Stephen George
O’Hare, Bernadette
Journal Title
Journal ISSN
Volume Title
Publisher
MDPI
Abstract
This paper empirically investigates the link between the level of government revenue per
capita and six indicators of the quality of governance in an unbalanced panel data set consisting of all
countries in the world (217 countries; due to some missing data, (this was reduced to 196) using data
from 1996 to 2020. It uses single-equation generalised method of moment (GMM) techniques and a
vector autoregressive (VAR) and vector error correction model (VECM) approach to investigate this
issue. The results suggest a strong effect over time whereby an increase in government revenue leads
to a steady improvement in governance. These findings suggest an important virtuous circle between
government revenue and governance. As a result, additional government revenue can significantly
impact the Sustainable Development Goals more than our previous work has suggested.
Description
This study was originally commissioned under the UNU-WIDER project GRD—Government
Revenue Dataset.
DATA AVAILABILITY STATEMENT : This data uses publicly available data, which may be obtained by request from the authors.
DATA AVAILABILITY STATEMENT : This data uses publicly available data, which may be obtained by request from the authors.
Keywords
Government revenue, Worldwide governance indicators, Sustainable development goals (SDGs), Governance, Control of corruption, Government effectiveness, Political stability, Regulatory quality, Rule of law, Voice and accountability, United Nations (UN), Generalised method of moment (GMM), Vector autoregressive (VAR), Vector error correction model (VECM), Equilibrium correction model (ECM), SDG-17: Partnerships for the goals, SDG-16: Peace, justice and strong institutions
Sustainable Development Goals
Citation
Hall, Stephen, and
Bernadette O’Hare. 2023. A Model to
Explain the Impact of Government
Revenue on the Quality of
Governance and the SDGs.
11: 108. https://doi.org/10.3390/economies11040108.