Volume 11 Issue 2 2015


Athar Iqbal
Assistant Professor, Iqra University.

Dr. Ayub Mehar
Professor, Iqra University.

Abstract The purpose of this paper is to investigate the relation between the governance of a country and its impact on income inequality. The World Bank, Economic Freedom Network, Fraser Institute, and World Economic Forum have been defining and measuring the governance indicators. This study takes six governance indicators to score from -WWGI for the year 2000 and 156 counties data to calculate the correlation between wealth Gini and governance indicators. The statistical analysis is comprised of OLS estimation and Correlation analysis. We found a significant negative relation between governance indicators and wealth inequality, income inequality. Bad governance has a deep impact on the economy of Pakistan. Excessive debt, high fiscal deficit, high inflation, low tax to GDP ratio, high trade deficit, lack of adequate capital formation, and severe energy crisis are some of the economic challenges faces by Pakistan for decades. This study suggests that improvement in governance is not a single-day task, it cannot be achieved at once and it is not related to any department or institution. It’s a process that will establish equality, effective management of economic resources.
Keywords governance, income inequality, fiscal deficit
Year 2015
Volume 11
Issue 2
Type Short Report
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification -
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Manuscript Processing Blind Peer Reviewed
Format PDF
Paper Link
Page 213-228