Volume 6 Number 1 2025
The Political Economy of Public Policy: How Governance Quality Affects Economic Development in Bangladesh
Marium Binte Aziz1*, Sheikh Md. Abdullah Bin Kalam2, Hamim Ahammed Shovon3, Kawsar Mia4, Mahmuda Siddika Meem5, Md. Saidur Rahman Sheikh6, Pinki Mojumder7
Journal of Primeasia 6 (1) 1-8 https://doi.org/10.25163/primeasia.6110369
Submitted: 05 August 2025 Revised: 17 October 2025 Accepted: 15 October 2025 Published: 19 October 2025
Abstract
Background: Governance quality plays a central role in shaping the economic trajectory of developing countries, influencing public policy effectiveness, investment confidence, and citizen trust.
Objective: This study examined how governance quality affects economic development in Bangladesh through a political economy lens, emphasizing the interconnections among institutional effectiveness, accountability, rule of law, political stability, and corruption control.
Method: Using a quantitative cross-sectional survey design, primary data were collected from 430 respondents—comprising citizens, business owners, and public officials—from both urban and rural areas of Dhaka and Chattogram Divisions. Stratified random sampling ensured representation across socioeconomic and occupational groups. A structured questionnaire measured governance indicators, public policy outcomes, and development dimensions including employment, infrastructure, investment, and poverty reduction. Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression models in SPSS.
Results: The findings revealed that governance quality in Bangladesh is perceived as moderately effective, with notable progress in transparency but persistent challenges in corruption control and bureaucratic efficiency. Government effectiveness and corruption control emerged as the strongest predictors of economic development outcomes. While modest improvements were noted in employment and infrastructure, the investment climate and poverty reduction efforts remained weak. Citizen participation and institutional trust were found to mediate governance impacts, highlighting the importance of participatory mechanisms.
Conclusion: The study concludes that enhancing transparency, digital governance, and institutional accountability are essential for fostering inclusive and sustainable economic growth in Bangladesh.
Keywords: Governance Quality, Political Economy, Public Policy, Citizen Trust, Economic Development
References
Adebayo, A., Ackers, B., Erin, O., & Adegboye, A. (2025). Governance quality and sustainable development: Insights from the United Nations Sustainable Development Goals in Africa. Public Organization Review, 25(2), 439–464. https://doi.org/10.1007/s11115-025-00810-7
Al Hosani, I. I. A., Dweiri, F. T., & Ojiako, U. (2020). A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates. International Journal of System Assurance Engineering and Management, 11(6), 1250–1259. https://doi.org/10.1007/s13198-020-00979-8
Asadullah, M. N., & Chakravorty, N. N. T. (2019). Growth, governance and corruption in Bangladesh: A re-assessment. Third World Quarterly. https://doi.org/10.1080/01436597.2019.1599854
Aytekin, M. (2022). Analysis of the relationship between countries’ governance levels and economic growths. Anadolu University Journal of Faculty of Economics, 4(1), 1–19. https://doi.org/10.54737/aujfe.1053362
Barai, M. K. (2020). Conclusion: Bangladesh’s development—Challenges to sustainability and the way forward. In M. K. Barai (Ed.), Bangladesh’s economic and social progress: From a basket case to a development model (pp. 383–409). Springer. https://doi.org/10.1007/978-981-15-1683-2_13
Basna, K., & Gugushvili, D. (2025). Corruption and the social legitimacy of the welfare state: A comparative cross-national analysis. Global Social Policy. https://doi.org/10.1177/14680181241308409
Bhattacharya, D., Khan, T. I., & Rabbi, M. H. (2024). Macroeconomic impact and policy implications. In COVID-19 and Bangladesh. Routledge.
Bonai, I., & Lambelanova, R. (2023). Peran kebijakan publik dalam tata kelola pemerintahan yang baik di Distrik Mamberamo Tengah Kabupaten Mamberamo Raya. Jurnal Kajian Pemerintah: Journal of Government, Social and Politics, 9(2), 50–58. https://doi.org/10.25299/jkp.2023.vol9(2).14622
Chand, M. (2024). The emerging Bengal tiger: Opportunities and challenges for MNCs and policymakers. AIB Insights, 24(2). https://doi.org/10.46697/001c.115315
Chowdory, M. M. U. (2024). Overview of governance and rampant corruption in land administration in Bangladesh. South Asian Journal of Social Sciences and Humanities, 5(5), 176–194. https://doi.org/10.48165/sajssh.2024.5509
Cochran, W. G. (1942). Sampling theory when the sampling-units are of unequal sizes. Journal of the American Statistical Association, 199–212.
Dixit, V. (2023). Public expenditure quality of states for education and health: Does rationalisation of grants matter? In A. Raychaudhuri & A. Ghose (Eds.), Managing pandemic and correcting development fundamentals: India’s great challenge (pp. 241–271). Springer Nature. https://doi.org/10.1007/978-981-19-8680-2_11
Duwal, N., & Suwal, S. (2024). Institutional quality and economic growth. Uygulamali Ekonomi ve Sosyal Bilimler Dergisi, 6(1), 13–31. https://doi.org/10.46959/jeess.1466383
Farooq, U., Tabash, M. I., Al-Rdaydeh, M., & Al-Faryan, M. A. S. (2022). Measuring the impact of country-level governance on corporate investment: A new panel data evidence. Global Business Review. https://doi.org/10.1177/09721509221112993
Fosu, A. K., & Gafa, D. W. (2022). Poverty, inequality and governance: A global perspective. In Handbook of governance and development (Chapter 15). Edward Elgar Publishing. https://www.elgaronline.com/edcollchap/book/9781789908756/book-part-9781789908756-25.xml
Gaur, M., & Kant, R. (2020). The role of government and governance in human development: A study of very high development economies. European Journal of Business and Management Research, 5(5). https://doi.org/10.24018/ejbmr.2020.5.5.546
Handoyo, S. (2023). Worldwide governance indicators: Cross country data set 2012–2022. Data in Brief, 51, 109814. https://doi.org/10.1016/j.dib.2023.109814
Huque, A. S., & Zafarullah, H. (2023). Public administration in twenty-first century Bangladesh: Fossilised, bureaucratised, politicised. In Public administration in South Asia. Edward Elgar Publishing. https://www.elgaronline.com/edcollchap/book/9781839104794/book-part-9781839104794-27.xml
Jubaer, A. K. M. (2024). Enhancing public finance accountability: A comprehensive analysis of parliamentary oversight on audit reports in Bangladesh. Research Square. https://doi.org/10.21203/rs.3.rs-5294647/v1
Mirzaakhmedov, K. Z. (2023). Connection of corruption and economic problems. Journal of Social Sciences and Humanities Research Fundamentals, 3(11), 28–29. https://doi.org/10.55640/jsshrf-03-11-06
Mohammad Main Uddin, M., Das, K., & Sikdar, S. A. (2024). Transition of Bangladesh economy to tiger economy from bottomless economy: A fifty years (1972–2022) perspective. International Journal of Science and Business, 37(1). https://www.ijsab.com/volume-37-issue-1/6966
Eze, F. O., Mbah, P. C., & Enugu State University of Science and Technology. (2024). Governance, corruption and development in Nigeria. AKSU Journal of Social Sciences, 5(1), 35–46. https://doi.org/10.61090/aksujoss.2024.033
Raihan, S., Ferdousi, R., & Mahmood, T. I. I. (2024). Critical institutional areas for Bangladesh’s development. In F. Bourguignon, S. Raihan, & U. Salam (Eds.), Is the Bangladesh paradox sustainable?: The institutional diagnostic project (pp. 71–98). Cambridge University Press. https://doi.org/10.1017/9781009284677.006
Riduan, A. (2024). Citizen participation in policy decision-making. International Journal of Multidisciplinary Approach Sciences and Technologies, 1(2), 65–74. https://doi.org/10.62207/fz1xn342
Sari, A. R. (2023). The impact of good governance on the quality of public management decision making. Journal of Contemporary Administration and Management (ADMAN), 1(2), 39–46. https://doi.org/10.61100/adman.v1i2.21
Sharma, S., Kar, A. K., Gupta, M. P., Dwivedi, Y. K., & Janssen, M. (2022). Digital citizen empowerment: A systematic literature review of theories and development models. Information Systems Frontiers. https://doi.org/10.1080/02681102.2022.2046533
Umadevi. (2024). Governance and human rights in South Asia: An evolving perspective. ShodhKosh: Journal of Visual and Performing Arts, 5(4), 297–301. https://doi.org/10.29121/shodhkosh.v5.i4.2024.1920
Vavoura, C., Manolopoulos, D., & Vavouras, I. (2021). The interactions between governance quality and economic development. In V. Vlachos, A. Bitzenis, & B. S. Sergi (Eds.), Modeling economic growth in contemporary Greece. Emerald Publishing Limited. https://doi.org/10.1108/978-1-80071-122-820211007
Wang, E. H. (2022). Frightened mandarins: The adverse effects of fighting corruption on local bureaucracy. Comparative Political Studies. https://doi.org/10.1177/00104140211060276
Zafarullah, H., & Ferdous, J. (2021). Cyberspace at the grassroots: E-governance and citizen/stakeholder perceptions at the local level in Bangladesh. Journal of Development Policy and Practice. https://doi.org/10.1177/24551333211034082
Zafarullah, H., & Huque, A. S. (2021). Corruption and its control: The pursuit of probity in Bangladesh. Emerald Insight. https://www.emerald.com/books/edited-volume/15778/chapter/87424331/
Zhang, C., Ma, W., Fan, C., & Qi, L. (2024). The application and innovation of digitization in the field of procurement management. Frontiers in Business, Economics and Management, 17(1), 156–159. https://doi.org/10.54097/mqjzwf05