The worldwide governance indicators project: answering the critics
Daniel Kaufmann, Aart Kraay, Massimo Mastruzzi, World Bank. Development Research Group. Growth and Macroeconomics Team, World Bank Institute. Global Programs
World Bank, World Bank Institute, Global Programs, and Development Research Group, Growth and Macroeconomics Team, 2007 - Economic Development - 33 pages
The Worldwide Governance Indicators, reporting estimates of six dimensions of governance for over 200 countries between 1996 and 2005, have become widely used among policymakers and academics. They have also attracted some explicit written criticisms. In this short paper the authors synthesize 11 critiques offered by four recent papers. They then refute them as either conceptually incorrect or empirically unsubstantiated.
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204 countries African Development Bank aggregate governance indicators aggregate indicators alternative weighting schemes argue Asian Development Bank assessments of governance averages of governance capita incomes commercial risk rating common data sources construct validity Control of Corruption convergent validity correlated errors Corruption indicator criticism cross-country surveys definition different data sources dimensions of governance discriminant validity estimates of governance example expert assessments February 2007 February firm survey Freedom House governance across countries governance and growth governance data halo effects highly correlated household survey individual data sources institutional quality Kraay and Mastruzzi ln fact ln short margins of error Mastruzzi 2006 measure corruption measures of governance measuring governance methodological break pairwise ranks reason regression responses risk rating agencies sample significant simply six governance indicators sources make correlated surveys of firms underlying data sources underlying the WGI users Voice and Accountability world averages World Bank Worldwide Governance Indicators