Does country-level governance matter for national development? An analysis on the founding states of Turkic council

Abstract

This study aims to examine if there is a long-term relationship between the participation of 'country-level governance' and 'national development' through the data of founding countries of the Cooperation Council of Turkish Speaking States (Turkic Council)? The hypothesis of there is a significant long-term relationship between country-level governance and national development was tested via the panel data analysis of four Turkic countries: Azerbaijan, Kirgizstan, Kazakhstan, and Turkey. The compounds of the 'Worldwide Governance Indicators' were used as the independent variable, and 'Human Development Index' as the dependent variable. A Panel Causation Test was conducted to investigate if there are long-term co-integration and causation between country-level governance and national development. Our results found that there is significant causation between the country-level governance indicators of 'Voice and Accountability' and 'Government Effectiveness' with the 'national development' process. Thus, our findings will contribute to both academics who study the effects of governance on development and to policymakers who utilize these sources for improved political and social development with the aim to prevent poverty and improve access to basic human needs.