Abstract
Purpose of the study: Globally, governments are struggling to deliver quality services, and as a result, the concept of good governance has been high on the public management agenda for several years. The literature indicates that good governance is critical for growth and development. The primary aim of this paper was to test the impact of some of the determinants of governance, including the relationship between good governance and economic growth and development in South Africa. South Africa, a developing country, was selected due to its status as a proxy for emerging economies.Design/methodology/approach: A quantitative econometric modelling methodology was utilized to determine long and short-run relationships using an ARDL model for the period from 1996 to 2021. Variables included in the model were good governance, economic development and other governance variables.Findings: Long-run relationships were established, as well as short-run causality relationships. It was found that the independent variables such as GDP per capita, corruption control, political stability and the rule of law do positively impact on good governance.Recommendations/value: Good governance, as a concept, has become more and more important in both developing and developed countries. This empirical study is unique in analysing a developing country using an econometric model including both governance and economic variables.Managerial implications: Good governance is a requirement for strong and quality public institutions and should be the major focus area for modern governments.