<abstract xmlns="http://www.w3.org/1999/xhtml"><p>We examine the impact of the 1997 Asian Crisis on governance. We look into how the crisis affected High-Income OECD, High-Income Non-OECD, Upper-middle Income, Lower- Middle Income, and Low Income Countries. For measures of governance, we use the World Bank’s Governance Indicators dataset which includes six measures of governance. We find that pre- and post-crisis, the ranking of each income group has not changed except for year 2004 when the High-Income Non-OECD Countries surpassed the High-Income OECD Countries in “Political Stability and Absence of Violence” category. In other words, our results show that, other than that exception in 2004, both pre- and post-crisis, the High-Income OECD Countries had the best governance measures, the High-Income Non-OECD Countries had the second best measures, and so on, in the order shown above. One point to note here: The High-Income Non- OECD Countries performed much better than the other groups after year 1998. After 1998, this group improved in all six dimensions of governance. We conclude that although crises affect all income groups, because of certain characteristics of the High-Income Non-OECD group, they tend to better react to crises.</p></abstract>

We examine the impact of the 1997 Asian Crisis on governance. We look into how the crisis affected High-Income OECD, High-Income Non-OECD, Upper-middle Income, Lower- Middle Income, and Low Income Countries. For measures of governance, we use the World Bank’s Governance Indicators dataset which includes six measures of governance. We find that pre- and post-crisis, the ranking of each income group has not changed except for year 2004 when the High-Income Non-OECD Countries surpassed the High-Income OECD Countries in “Political Stability and Absence of Violence” category. In other words, our results show that, other than that exception in 2004, both pre- and post-crisis, the High-Income OECD Countries had the best governance measures, the High-Income Non-OECD Countries had the second best measures, and so on, in the order shown above. One point to note here: The High-Income Non- OECD Countries performed much better than the other groups after year 1998. After 1998, this group improved in all six dimensions of governance. We conclude that although crises affect all income groups, because of certain characteristics of the High-Income Non-OECD group, they tend to better react to crises.

The Impact of the Asian Crisis on Governance: Does OECD Membership or Income Levels Matter?

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

We examine the impact of the 1997 Asian Crisis on governance. We look into how the crisis affected High-Income OECD, High-Income Non-OECD, Upper-middle Income,...

The Impact of the Asian Crisis on Governance: Does OECD Membership or Income Levels Matter?

Published Online: Sep 10, 2018

Page range: 115 - 130

DOI: https://doi.org/10.2478/sbe-2018-0024

Keywords
Governance, Asian Crisis, WGI, Economic Crisis

© 2018 Kaya Halil Dincer, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Impact of the Asian Crisis on Governance: Does OECD Membership or Income Levels Matter?

Published Online: Sep 10, 2018

Page range: 115 - 130

DOI: https://doi.org/10.2478/sbe-2018-0024

KeywordsGovernance, Asian Crisis, WGI, Economic Crisis

© 2018 Kaya Halil Dincer, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Governance, Asian Crisis, WGI, Economic Crisis