Role of Good Governance in the Knowledge-Based Economic Growth: Comparative Study of Selected Countries

Abstract

Purpose: The sustainable long-erm knowledge economic growth of any country is often attributed to economic performance and institutional regimes. In the current era of globalization, the Indian economy is one of the fastest-growing. Due to the growing consumer market and information sector, the Indian economy has experienced average economic growth of 7% over the past 20 years. However, is this growth sustainable or merely a passing fad? A climate that is innovative is important for attaining sustainable growth over the long run. This essay's goal is to examine the knowledge economy's core tenet, i.e. economic and institutional framework that offers a general framework for managing the economy and compares India to Finland, Japan, and Korea in order to assess the country's preparedness for the knowledge economy.

Methodology: This paper defines knowledge and innovation based governance in fostering and implementing policies nourishes a productive and creativity environment. Effect of Macroeconomic stability, regulatory policies, competition, legal rules, and procedures results in competitive business culture and conducive to entrepreneurship and risk-taking. World Bank’s data is the primary source of this study. Time series data has been used to study comparisons among countries, indicates towards role of various indicators like economic growth, GDP growth Rate and Human development index. The study includes a comparative analysis of India, Japan, South Korea, and Finland.. Study reflects examples of South Korea, Japan, and Finland countries leading on knowledge and innovation, transformed itself from a low-income country in 50 years.

Findings: India needs to work on establishing the Rule of Law as ROL impacts the foreign investment and ease of business. The ease of doing business and foreign investments directly cater to the country's economic growth. Yet again, enforcement of the law is impacted by the population size. Still, the size of the population also ensures a bigger administrative team, and hence the problem can be addressed. India may draw its attention to the structure of the administration and shall work on the reachability of administration at a macro level.

Social/ Physical Implications of Study: This study can provide some insights to policymakers that can be helpful for society in terms of the efficient use of our resources.

Originality/ Novelty of Study: This study is an original research.