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In most cases, researchers assume that control of corruption, rule of law, accountability, and government expenditure tend to have a positive impact on government effectiveness. Nonetheless, recent theoretical and empirical evidence supports a mixed relationship between these variables. The paper, therefore, seeks to answer the extent to which corruption, the rule of law, accountability, and government expenditure affect government effectiveness. We employed Johansen method of cointegration and vector error correction model to examine the long-run and short-run relationship between the variables under study. By using Sri Lankan data covering the period from 1996 to 2020, we find a significant and positive relationship only between the control of corruption and government effectiveness both in the long run and in the short run. Yet, rule of law has a positive and significant impact on government effectiveness only in the long run. Voice and accountability, and government expenditure affect the government's effectiveness negatively in the long run and positively in the short run. The article demonstrates that weak anti-corruption mechanisms and weak legal and criminal justice systems seem to have a detrimental impact on government effectiveness in developing countries.

The article intends to investigate the relationship between corruption and poverty based on the panel data of SAARC countries over the period 1996–2019. We employed the panel ARDL of pooled mean group (PMG) technique to analyze the data and focus on capability poverty, using the human development index (HDI) as a proxy for poverty. The empirical findings of PMG of the ARDL model suggest that an increase in corruption score (COC) (i.e. decrease in corruption) and increase in women's labor force participation rate (WLFPR) seem to have a significant impact either in eradicating poverty or increasing social welfare in the long run as well as in the short run. A random effect (RE) model also identified a significant positive relationship between corruption score and HDI, and WLFPR and HDI. A Dumitrescu-Hurlin pairwise panel Granger non-causality test detected a bilateral causality relationship between COC and HDI, and WLFPR and HDI, while unilateral causality ran from WLFPR to COC. The article contributes to examining the dynamics between corruption and poverty from the governance aspect, taking South Asia as a case study.