Fast state governance: Empirical evidence on economic stability, institutional quality, and entrepreneurship (2010–2025)

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This paper tests the Fast State governance model, which posits that accelerating financial flows and automating administrative procedures improve macroeconomic stability, institutional quality, and human capital utilization. Using 2010–2025 panel and cross-country data — World Bank World Development Indicators (WDI) and entrepreneurship database, International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations E-Government Development Index (UN EGDI), World Bank Worldwide Governance Indicators (WGI) — the study estimates regression models with income controls and documented outlier handling. Results show that higher money velocity associates with lower gross domestic product (GDP) growth volatility, e-government development predicts stronger regulatory quality, and shorter, cheaper start-up procedures relate to higher new business density. These findings cohere with evidence that digital governance curbs corruption and raises effectiveness, and that business registration reforms significantly increase firm entry. The contribution is an integrated, empirically grounded framework linking “velocity” in state and market processes to resilience and entrepreneurship across diverse economies. Policy relevance is immediate: predictable acceleration and process automation can stabilize demand transmission, strengthen governance, and unlock entrepreneurial activity. The paper concludes that adopting the Fast State approach yields measurable gains in stability, trust, and human entrepreneurial capital, with implications for post-shock recovery and long-run development.

Keywords: Fast State, Velocity of Money, Macroeconomic Stability, E-Government, Corruption, Entrepreneurship, Automation, Governance

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: E58, H11, L26, O33, O43

Received: 30.06.2025
Revised: 28.10.2025; 18.11.2025; 16.02.2026
Accepted: 26.02.2026
Published online: 03.03.2026

How to cite this paper: Buriak, G. (2026). Fast state governance: Empirical evidence on economic stability, institutional quality, and entrepreneurship (2010–2025). Journal of Governance and Regulation, 15(2), 56–68. https://doi.org/10.22495/jgrv15i2art5