Abstract
Good governance, originating from political and economic sciences, is multifaceted and holds strategic importance in economic development and public administration. This study aimed to comprehensively analyse the various definitions and assertions of "good governance" concerning its implications for economic development. Key questions include the nature of good governance and its effect on a nation's economy. The research explores the causal relationship between good governance and economic development by emphasising transparency, efficiency, and corruption mitigation.
The primary objective was to examine the correlation between good governance and economic development in South Africa. Given South Africa's status as a developing nation with one of Africa's slowest-growing economies, the study sought to examine the relationship between Gross Domestic Product (GDP) per capita and World Bank Governance Indicators (specifically, government effectiveness, corruption control and regulatory quality indices) from 1996 to 2022.
Employing a quantitative econometric research methodology, the study utilised trend analysis graphs and Granger causality tests to explore the relationship between GDP per capita and World Bank Governance Indicators. A systematic literature review encompassed data collection, selection, reading, and analysis using Granger causality testing, descriptive statistics, and trend graph analysis.
Good governance is deemed essential due to legislative gaps, corruption prevention, maladministration mitigation, and the harmonisation of administrative law norms. While rooted in principles akin to the rule of law and democracy, the theory of good governance extends to the institutional framework of government, fostering input from all governmental bodies. This inclusive approach leads to a balance among governance principles, with various sources contributing to their development.
The study theorises that governance policies become significant once countries attain a particular economic and social development level, enabling organisations to foster growth effectively. This research also delves into the Mo Ibrahim Index of African
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Governance, providing deeper insights into South Africa's governance than other African nations mentioned in the index.
Findings suggest that corruption control and improvements in government effectiveness significantly impact economic development in South Africa. Consequently, governance indicators positively influence economic development. Hence, the study highlights the significance of achieving good governance for economic development within South Africa, positioning it as a crucial agenda item for global development efforts.
Keywords: Economic Development, Good governance, Public Management and Governance, South Africa.