Human Development and Good Governance (Nigerian Case; 1996-2010)

39 Pages Posted: 23 Sep 2012

See all articles by Anietie Essien

Anietie Essien

University of Uyo - Department of Economics; University of Lagos, Akoka

Date Written: July 26, 2012


In this research work we explore the effects of good governance on human development in Nigeria Economy. Hence we use six main indicators of governance; Control of Corruption, Political Stability, Voice and Accountability, Government Effectiveness, Regulating Quality and Rule of Law during period 1996 – 2010. The choice for this period is that democratic government is an important condition for promoting human development and in order to avoid committing a type I error due to the number of indicators employed in this study which will have effect on the degree of freedom we decided to include a pre-democratic regime. To achieve the above objectives, in the first step, we examine the order of stationary of our annual time series data using the Augmented Dickey Fuller (ADF) and Philip Perron (PP) statistical test. In the second step, since we were unable to investigate the existence of a long-run relationship among our variables using a Johansen co-integration test due to insufficiency of our data set; we carried out an OLS regression applying the first difference to our data. The results using the regression time series data analysis indicate that all the parameters in our model are stable through out the study period and that all indicators of good governance have significant effects on Human Development except for Regulating Quality. However, among these variables, only Control of Corruption as well Voice and Accountability. That is there evidence that good governance determines present human development or good governance could be considered as the policy variables through which we can obtain high human development in Nigeria and that past and current democratic government have impacted on the welfare and well being of the people. Hence, this indicates the extent of weakness of governance in Nigeria. However, we suggest that if the government wants to further improve the quality of life and well being of human, she should have aim to increase the status of governance by strengthen these indicators (Political Stability, Government Effectiveness, Regulating Quality and Rule of Law) and through the introduction of policies for a better governance.

Keywords: Good Governance and Human development

JEL Classification: J,Q20

Suggested Citation

Essien, Anietie, Human Development and Good Governance (Nigerian Case; 1996-2010) (July 26, 2012). Available at SSRN: or

Anietie Essien (Contact Author)

University of Uyo - Department of Economics ( email )

Akwa Ibom State
Uyo, AK South-South 1234

University of Lagos, Akoka ( email )

School Road
Yaba, LA Lagos state +234

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