Economics of Governance

, Volume 9, Issue 2, pp 131–175

The use (and abuse) of governance indicators in economics: a review

Original Paper

DOI: 10.1007/s10101-006-0025-9

Cite this article as:
Williams, A. & Siddique, A. Economics of Governance (2008) 9: 131. doi:10.1007/s10101-006-0025-9


The relatively recent increase in empirical work on the relationship between governance and economic performance has come about largely as a result of the development of a series of indicators that has allowed this relationship to be quantified. For the researcher, it is important to understand the advantages and disadvantages of these indicators, both to ensure the appropriate indicator is chosen, and to be aware of the limitations each entail. To that end, this paper reviews the common indicators used in empirical analysis, as well as some of the other estimation problems that can arise when using these measures.


GovernanceInstitutional qualityEconomic growth

JEL Classification Numbers


Copyright information

© Springer-Verlag 2007

Authors and Affiliations

  1. 1.Business SchoolUniversity of Western AustraliaCrawleyAustralia