Analyzing the Effect of Governmental Law on Ensuring Welfare Maximization of East African Citizens
Abstract
Purpose. The objective of this study is to determine the impact of institutional characteristics of public governance on the economic development of East African countries. Particular attention is paid to analysing the role of key components of good governance, including government effectiveness, rule of law, regulatory quality, political stability, and control of corruption, in shaping macroeconomic outcomes, particularly GDP per capita dynamics. The study aims to empirically examine the relationship between governance quality and long-term economic growth using comprehensive statistical data.
Method. The study employs a set of quantitative econometric methods. The empirical analysis is based on panel data for East African countries covering the period from 2000 to 2020 using data obtained from the World Bank database. A multiple regression model is applied to estimate the influence of independent variables on economic development indicators. Fixed-effects and random-effects regression models are used, while the Hausman test is applied to determine the most appropriate model specification. Statistical processing and econometric estimation are conducted using the STATA software package.
Theoretical implications. The theoretical contribution of the study lies in deepening the understanding of the role of governance quality and institutional factors in promoting economic development in developing countries. The findings expand the theoretical discussion on the concept of good governance and demonstrate the relationship between institutional quality and long-term macroeconomic performance.
Practical implications. The practical significance of the research lies in the possibility of applying the results in the formulation of economic policy and institutional reforms in developing countries. The conclusions of the study may support policymakers in improving regulatory policies, reducing corruption, strengthening institutional capacity, and creating a favourable investment climate that contributes to sustainable economic growth.
Paper type. Empirical research article.
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