Components of an Effective Economic Structure Based on Frameworks of Control, Integrity, and Transparency in the Economies of Developing Countries

Abstract

Developing countries face persistent challenges in achieving sustainable economic growth due to weak institutional frameworks, corruption, and lack of transparency. While substantial literature addresses governance and economic development separately, few studies integrate control, integrity, and transparency into a unified structural model for economic effectiveness. This study identifies and empirically validates the core components of an effective economic structure grounded in control mechanisms, integrity systems, and transparency frameworks in the context of developing economies. Using a mixed-method approach—quantitative survey data from 364 public and private sector managers across 12 developing countries (Nigeria, Egypt, Vietnam, Indonesia, Colombia, Bangladesh, Kenya, Pakistan, Philippines, Morocco, Ghana, and India), complemented by six semi-structured interviews with policymakers—we find that three higher-order components constitute an effective economic structure: (1) institutional control systems (regulatory oversight, audit mechanisms, enforcement capacity), (2) integrity frameworks (anti-corruption commissions, ethical codes, merit-based recruitment), and (3) transparency instruments (open data portals, fiscal disclosure, procurement transparency). Structural equation modeling reveals that these components collectively explain 68% of the variance in economic effectiveness (measured by investment climate, tax compliance, and public service delivery efficiency). Moreover, transparency mediates the relationship between control systems and economic effectiveness, while integrity moderates this mediation. The findings offer a actionable roadmap for policymakers in developing countries to sequence governance reforms for maximum economic impact.