Does Good Governance Good for Business: Insight from ASEAN+3

Authors

  • Firdaus Finuliyah Universitas Brawijaya Author
  • Axellina Muara Setyanti Universitas Brawijaya Author
  • Rian Surya Kesuma Universitas Brawijaya Author
  • Muhammad Dzaky Rafliansyah Universitas Brawijaya Author

DOI:

https://doi.org/10.35314/3yhghf08

Keywords:

asean

Abstract

This study investigates the impact of good governance on the ease of doing business in ASEAN+3 countries (ASEAN nations plus China, Japan, and South Korea) using the Panel Corrected Standard Error (PCSE) method for panel data analysis. The research examines six governance indicators and their influence on business environment metrics like the ease of starting a business.  The combined panel and cluster analyses reveal significant disparities in the economic environments of the ASEAN+3 region. Cluster 1 (Cambodia, Laos, Myanmar) faces challenges with low EoDB scores, poor governance, and high corruption, requiring substantial reforms. Clusters 3 and 4 (Japan, Malaysia, China, Thailand, South Korea, Singapore) benefit from strong governance, effective legal frameworks, and high productivity, illustrating the positive impact of robust institutions and political stability. The panel data analysis highlights the crucial role of government effectiveness, rule of law, and productivity in enhancing economic performance, while political instability and corruption significantly hinder outcomes, underscoring the need for political and institutional reforms.

Downloads

Download data is not yet available.

Published

2024-12-28

How to Cite

Does Good Governance Good for Business: Insight from ASEAN+3. (2024). Inovbiz: Jurnal Inovasi Bisnis Seri Manajemen, Investasi Dan Kewirausahaan, 4(2), 105-110. https://doi.org/10.35314/3yhghf08