The determinants of the institutional quality of countries

The aim of this paper is to contribute with new empirical evidence to the existing debate about the factors that determine the institutional quality of countries. A model which jointly includes the most relevant variables proposed in the literature on growth and institutions is provided, using the "Aggregating Governance Indicators" of Kaufmann et al. (2003). This estimate tries to confirm some hypotheses suggested in recent investigations about the supremacy of some institutional determinants over others. Furthermore, the sample is divided into different subsamples (high, medium and low income countries) in order to detect the possible presence of different standards of behaviour that do not permit a global response in relation to the determinants of institutional quality.