The determinants of governance: A cross-country analysis

Drawing on insights from economic, political, and cultural theories of governance, this article investigates the determinants of governance for a large sample of countries, both developed and developing. The results indicate that countries with a history of Western European influence and with British common law origins have better governance. In addition to these exogenous and historically predetermined variables, economic factors such as openness to trade, resource-intensity in exports, and levels of economic development have a significant impact on governance.