The Role of Governance Quality in Driving Economic Prosperity in ASEAN-5

Abstract

This study focuses on the effect of governance quality on the economic growth of ASEAN-5 countries by examining four governance indicators to determine their effect on GDP growth. This study utilized a quantitative approach using secondary data from the World Bank and other reputable institutions. The findings revealed that political stability and voice and accountability significantly and positively affect GDP growth, while regulatory quality has a significant and negative effect. Government effectiveness shows no significant effect on GDP growth. These results highlighted the importance of political stability and citizen participation for economic development in the ASEAN-5. The study underscores the need for tailored policy interventions considering each country’s unique background and emphasizes the critical role of governance quality in shaping economic outcomes. This research contributes to the literature by analyzing governance indicators and their collective impact on economic performance. It offers policymakers and government officials insights to enhance governance and sustainable growth.