Governance, entrepreneurship and economic growth

Abstract

In general terms, governance simply means how an organization is governed. It is the science of government performance and behaviour and it refers to several processes that must include historical, cultural, social and political determinants. For this reason, it is possible to establish a relationship between governance and institutions. Communities of persons, firms and institutions are essential ingredients of good governance and its analysis could be developed considering two possibilities. The first is considering the factors, such as entrepreneurship, by which government would more efficiently increase economic growth. Second is taking into account the economic results obtained by government. The primary goal of this paper is to analyze the relationship between governance, entrepreneurship and economic growth, developing an empirical analysis for the case of 11 developed countries.

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