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This thesis represents a contribution to the literature on the relationship between decentralisation, corruption, and economic growth. This relationship is analysed both theoretically and empirically. The first chapter investigates one of the channels through which decentralisation can potentially affect corruption and economic growth. The analysis uses a dynamic general equilibrium model to gain further insights into the effects of decentralisation on the structure of corruption. The results suggest that decentralisation, by bringing the people closer to government, can enable corrupt local government officials to internalise the effects of their behaviour. It thereby generates an incentive for officials to moderate their bribe demands. This has positive effects for investment and economic growth. The second chapter examines a potential trade-off that may occur when countries embark on a program of decentralisation. On the one hand decentralisation may improve the information problems that plague overly centralised governments, but at the same time it can potentially lead to a loss of control as discretionary power is granted to local officials without implementing the required accountability mechanisms. The results of the analysis suggest that while decentralisation can potentially reduce corruption an aid economic performance in the long run, it may inevitable lead to increased corruption in the short-run. A key idea is that extra care must be taken to introducing accountability structures at the local level, but that these will likely take time before becoming effective, so that in the near term corruption may increase. In the third chapter the relationship between decentralisation, corruption and economic growth is analysed empirically, using panel data techniques. While previous studies have looked at the relationship between decentralisation and corruption, or between decentralisation and growth, or between corruption and growth, few have looked at the joint relationship between the three. Moreover, previous studies often suffer from endogeneity problems. To overcome this, the Generalised Method of Moments technique is employed; an approach that has not been used on this topic before. It is shown that, while there is evidence that corruption hampers economic growth, the effects of decentralisation are ambiguous. The chapter highlights the inherent difficulties in analysing the effects of decentralisation, which is a complex and multifaceted concept that is impossible to fully capture in the data. This suggests that empirical studies will inevitably be limited in their ability to fully assess a relationship as nuanced as this. The implication is that further investigation at the theoretical level is required. Overall, the thesis provides support for the idea that decentralisation can potentially lead to beneficial outcomes, both in terms so of combating corruption and in wider economic terms. However, it also suggest that care must be taken when implementing reforms as these beneficial outcomes a far from certain.

Economic growth has been viewed as being significantly influenced by banking performance and efficiency. Banks obtain deposits from excess funds and lend money to investors who support overall economic expansion. Direct participation in economic activities and the channelling of funds are recent developments in the banking sector. As a result, academic researchers are becoming increasingly concerned about banking performance and how it affects economic growth. According to the literature, a number of factors influenced banking performance and efficiency. In this study we look at four categories of variables. This study analyses the implications of the regulatory and economic environment, monetary policy regime, and uncertainty for bank performance and efficiency. We study banking system of G7 and E7 because, It was observed that the shift of economic power from developed to developing countries had an impact on the international banking business, but G7 countries dominate the global financial governance and have not yet lost control of the global financial and economic governance agenda. Research questions that we analysed in this research include What are the determinants of Bank Performance (Profitability and other measures of performance) in G-7 and E-7? What are the determinants of Bank Efficiency (different aspects of efficiency) in G-7 and E-7? Is there a nexus between bank performance and efficiency in G-7 and E-7? The study's research goals were: To analyse the determinants of Bank Performance (Profitability and other measures of performance) in G-7 and E-7, To investigate the determinants of Bank Efficiency (different aspects of efficiency) in G-7 and E-7 and to explore the nexus between bank performance and efficiency in G-7 and E-7, which were not investigated before. Employing multiple indicators of bank performance and efficiency and underlying explanatory factors, we used a novel set of empirical approaches including Fixed Effects, Random Effects, Panel Fully Modified Least Squares (FMOLS), Panel Dynamic Least Squares (DOLS), the Generalized Method of Moments (GMM) and DEA. With the help DEA we developed two variables of efficiency these are operational investment efficiency of banking sector . First, the models were evaluated in their entirety and then they were divided into two equal groups of seven countries. All the variables had a statistically significant impact on banking performance both positively and negatively. Considering the data of both developed (G7) and developing (E7) economies from 2001 to 2020, our results reveal that leverage, capital adequacy, monetary policy, economic growth, inflation, exchange rate and uncertainty have significant implications for various aspects of bank performance. There are significant differences between the developed and developing economies' banking sector performance and efficiency under the influence of regulatory and economic environment, monetary regime, and uncertainty. For the banking industry, operational and investment efficiencies are two of the most significant factors promoting long-term performance and financial sustainability. Our key findings show that leverage, capital adequacy, monetary conditions, economic outlook, price stability as well as exchange rate stability and uncertainty have substantial effects on underlying indicators of bank efficiency. Under the effects of the regulatory and economic environment, uncertainty, and monetary regime the banking sector efficiency of developed (G7) and developing (E7) economies differ substantially. Moreover, the nexus between performance and efficiency reveals that efficiency has a positive impact on return on assets, but it has a negative impact on return on equity. The outcomes outlined in this study hold significant policy implications. The financial sector reforms implemented in G7 & E7 will significantly improve the performance and efficiency of the banking sector. Additionally, during EPU government have to support bank to boost their profit by reducing taxes on development activities. Finally, policy makers and bank management have to sit together to make better policies.

This study aims to examine the impact of political instability on economic performance in the Middle East and North Africa (MENA) region. It covers the period from 2006 to 2018 and includes 14 countries. The effects of political instability on economic growth and inflation volatility are investigated separately in this study. First, the study uses 19 political instability indicators to analyse the multidimensionality of political instability. By using a factor analysis technique, the study finds five dimensions of political instability. Second, the research adopts generalised autoregressive conditional heteroscedasticity (GARCH), exponential GARCH (EGARCH), and threshold GARCH (TGARCH) volatility specifications to model country-specific monthly inflation data. Third, the study examines the impact of the five dimensions of political instability on inflation volatility by adopting the dynamic generalized method of moments (GMM) panel. Similarly, this research evaluates the effects of the five political instability dimensions on economic growth, and reports evidence of the positive and negative effects of political instability on economic performance. In particular, the instability of the political regime dimension significantly weakens economic performance by increasing inflation volatility and slowing economic growth. On the other hand, the most striking result is that the dimension of government instability significantly improves economic performance by lowering inflation volatility and raising economic growth.

The effectiveness of aid is a matter of much controversy. In response, the aid effectiveness agenda, developed through numerous conferences and declarations since the 2000s, has been promoted as a potential solution to problems identified with previous aid regimes. This investigation aims to analyse the aid effectiveness agenda in Bangladesh, a leading aid recipient country. Particular emphasis has been given to the development of aid policies, how they have been implemented and the contributions they have made to aid effectiveness. The study applies the top-down public policy implementation approach to develop the conceptual framework. This research adopts qualitative methodology and case study strategy. It opts thematic analysis technique to analyse sixty six in-depth interviews and numerous policy documents, many of which have not been accessed by previous studies. Key findings include: both Government and donors have not shown sufficient commitment to implement the agenda; more focus has been given to initiatives with a high visibility at international events than to outcomes; most initiatives are project-based and have not been institutionalised; there is insufficient understanding (or even awareness) of the aid effectiveness agenda among Government officials; donors are reluctant to change their systems and procedures; top-down policy implementation approach of both Government and the donors has remained relatively unsuccessful. The study shows the shift from aid to development effectiveness agenda has negatively impacted country level activities and the implementation of the agenda is currently in limbo. The reasons for this are complex, including problems with donors, recipients and with the agenda. Problems with donors include political agendas and interests, preference of own policies and procedures and a lack of respect for recipient leadership. Issues with recipients include poor leadership, weak policy implementation and a fear of losing funding. Problems identified with the agenda are the legally non-binding nature and the shift from aid to development effectiveness.