The Relationship Between The Government Governance And Economic Development In Samoa

Economists and people around the world have come to an understanding that government governance is one of the serious aspects explaining the difference in performance of a country across the globe.The central questions addressed by this study are ? whether there is a correlation between the government governance and economic development ? which dimensions of government governance that contributes most to the economic development.Government governance is proxied by five dimensions of the World Governance Indicators including voice and accountability,political stability,government effectiveness,rule of law and control of corruption.Economic Development is defined by four economic indicators including gross domestic product,prices of goods and services,trade balance and foreign direct investment.The data was collected from the World Bank related to Samoa covering the period of 1996-2014.The main statistical tests such as Spearman?s rho correlation and multi linear regression were used to test the hypotheses and the model.The study concludes that among the five dimensions of World Governance Indicators,Control of Corruption is the only dimension that is statistically significant correlated whereas the remaining four dimensions are negatively correlated with Economic Development.On the other hand,Political Stability contributes highly to the economy.According to the conclusion,the government should focus more on the other variables on how to improve their functions in the future.It is extremely shown that this paper will help to determine the current situation of the country and to identify more professional ways to help improve the government management for the future well-being of the country.