Good governance and human development: Evidence form Indian States

Abstract

The paper explores the impact of good governance on human development in India during the last two decades. Using panel data analysis, it finds the evidence that good governance and past human development determines present human development in India. That means good governance can be considered as the policy variables through which we can obtain high economic growth and human development in the country. The paper accordingly suggests that with better institutional mechanism and good governance the country can put its development process in the higher ladder of growth and human development. The lack of same may affect the development process, particularly to achieve sustainable economic growth and human development. Hence governments should have aim to increase the status of good governance and can maintain the same with greater caution. This is not a daunting task, if there is adequate political will in the economy.