A Comparative Analysis of the Effect of Political Freedom and Governance Quality on Economic Growth: Evidence from Central Asian Countries and the G20 Using a Spatial Econometric Approach

Alimi, Mohammad Jawad; Dahmardeh Ghaleno, Nazar

doi:10.22126/pse.2025.12396.1201

A Comparative Analysis of the Effect of Political Freedom and Governance Quality on Economic Growth: Evidence from Central Asian Countries and the G20 Using a Spatial Econometric Approach

Document Type : Original Article

Authors

¹ PH.D Student of economics in sistan and Bluchistan

² Professor of Economics, Department of Economic Sciences, Faculty of Economics and Administrative Sciences, University of Sistan and Baluchestan, Iran

10.22126/pse.2025.12396.1201

Abstract

Abstract

Achieving economic growth and development has always been one of the fundamental goals of countries. Accordingly, this study aims to examine the effects of political freedom and governance quality on economic growth, using a comparative approach between Central Asian countries and the G20. To this end, panel data for the period 2002–2022 were employed, and a spatial econometric model was applied. Moran’s and Geary’s tests confirmed the presence of spatial dependence and spillover effects among countries. The results indicate that in Central Asian countries, political freedom and trade openness have positive and significant effects on economic growth, while corruption control has a negative and significant impact, and regulatory quality shows no significant effect. In the G20 group, civil liberties and corruption control positively and significantly affect economic growth, whereas regulatory quality has a negative and significant effect, and political rights do not exhibit a significant or notable impact on economic growth. Regarding spatial spillover effects, civil liberties and regulatory quality in Central Asian countries have negative and significant spillovers, while corruption control has positive and significant spillovers. In contrast, within the G20, political rights generate negative and significant spillovers, whereas civil liberties positively and significantly affect the economic growth of neighboring countries. Overall, the findings demonstrate that the effects of political freedom and governance quality differ across the two groups of countries. Therefore, achieving sustainable economic growth requires policy-making tailored to the institutional, political, and cultural structures of each region, as a one-size-fits-all policy approach cannot be effective for all countries.

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