Abstract. The main purpose of this paper is to estimate the relationship between governance, economic growth, inequality and poverty for 81 countries for the period 2000-2016. We divided the countries into three groups, low-income, lower-middle-income and upper-middle-income countries. We used a structural model with simultaneous equations on Panel data. Our results show that the positive or negative impact of governance on the growth-inequality-poverty triangle changes depending on the dimension of governance taken into account and the sample being studied. Given the negative relationship between inequality and growth, democracy should a second time positively affect economic growth through the reduction of inequalities.

Keywords: governance, economic growth, inequality, poverty.