The Relationship Among Ethics, Governance and Economic Development

Abstract

Using structural equations, this study investigates the relationships among ethics, governance of state and economic development. Statistical evidence was found of relationships among these variables. This statistical evidence suggests that institutions and governments will benefit from acting in proactive ways to promote ethical practices to improve the environment for business and thereby create conditions for growth in trade to further the economic well being of individuals.

Keywords: Ethics, corruption, governance, economic development, organizations, structural equations, GDP growth, gross capital formation, income per capita, government effectiveness

JEL Classification: H00, H10, C30