Effect of Rule of Law on Government Effectiveness:

A Cross-Country Comparison of the United Kingdom (UK) and Germany

Jasmin Latovic

Murat Bilgin

 

Abstract: This article aims to determine the effects of the rule of law on government effectiveness in the UK and Germany. World Bank Country Reports database for Germany and the UK, including rule of law, government effectiveness, GDP, and GINI, for the period 1996-2023 were used for the study. Rule of law, government effectiveness and GDP differences between Germany and the UK were statistically insignificant (p>0.05). GINI level for the UK was significantly higher compared to Germany (p<0.05). In both countries, the rule of law trends were similar, with a peak in 2014 and a decreasing trend after that peak. In 2023, the UK had a lower rule of law score compared to Germany, and both countries had a lower value in 2023 compared to 1996. Government effectiveness means were similar, but the range and mean in the UK were insignificantly higher compared to Germany (p>0.05). The rule of law was significantly correlated with government effectiveness for both Germany (r=0.427) and the UK (r=0.422). Correlations between the rule of law and GDP and GINI were statistically insignificant for both countries (p>0.05). The effect of government effectiveness on the rule of law for Germany was statistically insignificant (p>0.05). In the UK, the effect of government effectiveness on the rule of law was statistically significant (B=0.403). Although correlation analyses showed a positive relationship between the rule of law and government effectiveness for Germany and the UK, this relationship was significant at the effect level for the UK.