Good Governance and Economic Development: A Comparative Study among the Districts of Assam

Abstract

Development linked governance has been an issue much debated about in the contemporary world. Good governance is considered as a key and essential ingredient of social and economic development, especially in developing countries. Good governance is critical for economic development and it is believed to be the single most important factor in eradicating poverty and promoting development. The research work conducted by the international organizations such as International Monetary Fund (IMF), the United Nations and the World Bank shows that good governance leads to economic growth. It has been discovered that high-quality institutions have the power, over the long run, to raise per capita income and promote growth in all parts of the world and the “development dividend” due to good governance is large.

Governance is a multi dimensional issue which has an intimate relationship with economic development. This study seeks to explore that relationship in the context of the state of Assam. In order to evaluate the governance situation in Assam a composite Governance Indicator namely Good Governance Index will be constructed. Moreover, in order to study the relationship between governance and economic development, Pearson correlation will be used to check whether there is any positive relationship between the two.