The impact of government effectiveness on corruption control: an empirical study of 85 developing countries from 2002 to 2021

Abstract

This study analyzes the impact of Government Effectiveness (GE) on Control of Corruption (CC) in 85 developing countries over the period 2002–2021. Using panel data and applying Pooled Ordinary Least Squares (POLS) and Generalized Least Squares (GLS) regression methods, the study also examines the role of control variables. The findings indicate that GE has a positive and significant effect on CC, reaffirming the central role of effective governance in mitigating corruption. Rule of Law (RL) is also identified as a crucial factor, emphasizing that a transparent and equitable legal system can constrain the abuse of power. Regulatory Quality (RQ) exhibits a positive but limited impact, whereas GDP has a slightly negative effect, suggesting that economic growth alone does not necessarily enhance corruption control in weak governance environments. Both Voice and Accountability (VA) and Foreign Direct Investment (FDI) demonstrate positive influences, highlighting the importance of accountability and reform pressure from international investors. This study not only provides empirical evidence on the relationship between public governance and corruption control but also offers practical policy implications. Countries should enhance government effectiveness, strengthen the rule of law, improve accountability mechanisms, and establish transparent oversight frameworks to mitigate corruption and advance Sustainable Development Goal 16: Peace, Justice, and Strong Institutions.