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The Impact of Corruption, Rule of Law, Accountability, and Government Expenditure on Government Effectiveness: Evidence From Sri Lanka

The Impact of Corruption, Rule of Law, Accountability, and Government Expenditure on Government... In most cases, researchers assume that control of corruption, rule of law, accountability, and government expenditure tend to have a positive impact on government effectiveness. Nonetheless, recent theoretical and empirical evidence supports a mixed relationship between these variables. The paper, therefore, seeks to answer the extent to which corruption, the rule of law, accountability, and government expenditure affect government effectiveness. We employed Johansen method of cointegration and vector error correction model to examine the long-run and short-run relationship between the variables under study. By using Sri Lankan data covering the period from 1996 to 2020, we find a significant and positive relationship only between the control of corruption and government effectiveness both in the long run and in the short run. Yet, rule of law has a positive and significant impact on government effectiveness only in the long run. Voice and accountability, and government expenditure affect the government’s effectiveness negatively in the long run and positively in the short run. The article demonstrates that weak anti-corruption mechanisms and weak legal and criminal justice systems seem to have a detrimental impact on government effectiveness in developing countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Asian and African Studies SAGE

The Impact of Corruption, Rule of Law, Accountability, and Government Expenditure on Government Effectiveness: Evidence From Sri Lanka

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References (64)

Publisher
SAGE
Copyright
© The Author(s) 2023
ISSN
0021-9096
eISSN
1745-2538
DOI
10.1177/00219096221146999
Publisher site
See Article on Publisher Site

Abstract

In most cases, researchers assume that control of corruption, rule of law, accountability, and government expenditure tend to have a positive impact on government effectiveness. Nonetheless, recent theoretical and empirical evidence supports a mixed relationship between these variables. The paper, therefore, seeks to answer the extent to which corruption, the rule of law, accountability, and government expenditure affect government effectiveness. We employed Johansen method of cointegration and vector error correction model to examine the long-run and short-run relationship between the variables under study. By using Sri Lankan data covering the period from 1996 to 2020, we find a significant and positive relationship only between the control of corruption and government effectiveness both in the long run and in the short run. Yet, rule of law has a positive and significant impact on government effectiveness only in the long run. Voice and accountability, and government expenditure affect the government’s effectiveness negatively in the long run and positively in the short run. The article demonstrates that weak anti-corruption mechanisms and weak legal and criminal justice systems seem to have a detrimental impact on government effectiveness in developing countries.

Journal

Journal of Asian and African StudiesSAGE

Published: Jan 1, 2023

Keywords: Control of corruption; rule of law; voice and accountability; government expenditure; government effectiveness; cointegration; error correction model

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