The Effect of Good Governance Indicators on Productive Capacity Index in G20 Countries

This study aims to analyse the relationship between the productive capacity index (PCI) and the main dimensions of good governance indicators (GGI): voice and accountability (VA), political stability and absence of violence/terrorism (PSA), government effectiveness (GE), regulatory quality (RQ), rule of law (RL) and control of corruption (CC). For this purpose, the study considers data from G20 countries for the period 2002-2022 and applies the panel CCEMG test and a causality test to analyse the relationship between the variables. The analysis for each country shows that PCI and GGI have different effects.