The Relationship Amongst Countries’ Governance, Energy and Sustainable Development
Journal of Modern Accounting and Auditing, v. 7, n. 3, pp. 252 - 264, mar 2011
22 Pages Posted: 9 May 2012
Date Written: March 1, 2011
In this paper we construct a theoretical framework linking governance practiced by some countries to some of their economical, financial, social and environmental variables. To achieve this goal, we selected a sample of data composed of variables from 55 countries, available at the World Bank website. On the other hand, we measured the countries' level of governance by the indicator promoted by Transparency International. The period considered in this research was 8 years, from 2000 to 2008. We used the method of linear regression with panel data, in order to investigate statistical relationships among governance and the other variables. We applied the method of simultaneous equations in order to make a robustness test on the first results and findings. The results of the two models converged and showed the existence of a statistical significant relationship between governance and several of the variables investigated. This allows us to infer that the development of the countries governance is closely linked with the long-term sustainable development.
Keywords: Governance, sustainable development, linear regressions, structural equations
JEL Classification: Q40, C30
Suggested Citation: Suggested Citation