The Role of Government Effectiveness in the Light of ESG Data at Global Level

Laureti, Lucio and Costantiello, Alberto and Leogrande, Angelo (2023): The Role of Government Effectiveness in the Light of ESG Data at Global Level.

Abstract

In this article we estimate the level of Government Effectiveness-GE in 193 countries in the period 2011-2020 using data of the ESG World Bank Database. Different econometric techniques are used i.e. Panel Data with Random Effects, Panel Data with Fixed Effects, and Pooled OLS. Results show that GE is positively related among others to “Control of Corruption”, “Political Stability and Absence of Violence/Terrorism”, and negatively associated with “Percentage Annual GDP Growth”. We perform a cluster analysis with the k-Means algorithm optimized with the Elbow Method and we find the presence of four clusters. Finally, we confront eight machine learning algorithms for the prediction of GE. Results show that the Polynomial Regression is the best predictive algorithm. The value of GE is expected to growth on average by 15.97%.

• Item Type: MPRA Paper
• Language: English
• Keywords: Analysis of Collective Decision-Making, General, Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior, Bureaucracy, Administrative Processes in Public Organizations, Corruption, Positive Analysis of Policy Formulation, and Implementation.
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D70 - General; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D78 - Positive Analysis of Policy Formulation and Implementation

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