Abstract

This paper examines the impact of government effectiveness on the socio-economic development of eight South Asian countries by employing balanced panel data from 1999 to 2018. Random effects, ordinary regression, general trends are used to understand the impact of government performances. The empirical study confirms the insignificant effect of government effectiveness on the Human Development Index (HDI) as a measurement of socio-economic development. Conversely, good governance as a whole has a positive impact on HDI as well as per capita GDP growth rate. The study also indicates a puzzle of how a country or region having poor governance performs better in different socio-economic indicators.

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