Effects of Public Governance on Economic Development of the Municipalities of the Metropolitan Region of Salvador

Abstract

This research aims to identify the effects of public governance on the economic development of municipalities in the Metropolitan Region of Salvador (RMS) from 2015 to 2018. The statistical analysis was used in order to measure the association between public governance and the economic development of the Municipalities, using the Municipal Management Effectiveness Index (IEGM) as a governance proxy and the Gross Domestic Product (GDP) as a proxy for economic development per capita at current Municipal prices. This study is justified by the important reflection on the costs and benefits of implementing public governance mechanisms at the municipal level. According to recent literature and premises of IFAC and Supreme Audit Institutions, the application of public policies efficiently and effectively contributes to an improvement in public management with regard to transparency, integrity and accountability, which can result in advances in municipal economic development. The results of this research corroborate these studies, as they demonstrate that public governance positively and significantly influences the economic development of the thirteen municipalities analyzed.