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Relationships among World Governance Indictors and National Per Capital Income Weighted by Environmental Sustainability

Barry A. Friedman, Pamela L. Cox and Thomas Tribunella

The BRC Journal of Advances in Business

Volume 1

Number 2

Print ISSN: 2152-8616 Online ISSN: 2152-8667

Date: March 15, 2011

First Page 37

Last Page 54

Abstract

Governance consists of the “processes by which governments are selected, monitored and replaced; the capacity of the government to effectively formulate and implement sound policies; and the respect of citizens and the state for the institutions that govern economic and social interactions among them” (World Bank, 2006). We hypothesize that the World Governance Indictors (WGI) of voice and accountability, political stability, government effectiveness, regulatory effectiveness, rule of law and control of corruption contribute to National Per Capita Income (NCPI) weighted by the nation’s ability to maintain environmental sustainability (weighted NPCI). Weighted NPCI is a new dependent variable intended to measure a nation’s ability to co-manage economic concerns with efforts to maintain their environment. In a study of 142 nations, we found that WGI dimensions consistently predicted weighted NPCI from 2003 to 2005. We discuss implications of these findings and future research.

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