The Nexus Between Macroeconomic Variables And Governance Quality: A Panel Study From Emerging Economy

Abstract

This research study investigates the impact of macroeconomic variables on the Governance Quality of Pakistan for 2014-2023. The data is collected from the World Bank’s Development Indicators dataset and World Governance Indicators. GMM was used in this research work to analyze the panel data. By employing country-level governance characteristics rather than firm-level factors, this study adds to the body of literature. The empirical result variables foster country-level governance for non-financial firms operating in Pakistan. Policymakers and investors should consider these findings[1] when making decisions about economic policies and investments, and companies operating in Pakistan should be aware of the potential impact of these factors on their country-level governance and look for ways to manage them shows that macroeconomic effectively.