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The Determinants Of Institutional Quality. More On The Debate

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  • José Antonio Alonso
  • Carlos Garcimartín

Abstract

This paper provides new evidences about the determinants of institutional quality. Prior to implementing our empirical research, we discuss the criteria that should be used to judge the quality of institutions. Then, we identify the factors that, according to these criteria, determine institutional quality. The results obtained in the estimated model enable to draw some interesting conclusions. First of all, development level determines institutional quality: the highest the former, the highest the latter. Secondly, income distribution seems to condition institutional quality. A certain degree of social cohesion is needed to provide institutional predictability and legitimacy. Thirdly, a sound tax system is positively asso-ciated with institutional quality improvement. Taxes provide the necessary revenue to ge-nerate quality institutions, while creating a narrower and more demanding relation between State and citizens. Finally, education improves institutional quality. On the contrary, some of the variables identified in the literature either they do not seem to determine institutional quality or their effects are indirect, through the aforementioned variables.
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Suggested Citation

  • José Antonio Alonso & Carlos Garcimartín, 2013. "The Determinants Of Institutional Quality. More On The Debate," Journal of International Development, John Wiley & Sons, Ltd., vol. 25(2), pages 206-226, March.
  • Handle: RePEc:wly:jintdv:v:25:y:2013:i:2:p:206-226
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    Cited by:

    1. Markus Alzer & Ramin Dadasov, 2013. "Financial Liberalization and Institutional Development," Economics and Politics, Wiley Blackwell, vol. 25(3), pages 424-452, November.
    2. Asongu, Simplice & Kodila-Tedika, Oasis, 2016. "Determinants of Property Rights Protection in Sub-Saharan Africa," MPRA Paper 76587, University Library of Munich, Germany, revised Nov 2016.
    3. repec:eee:ecmode:v:68:y:2018:i:c:p:205-216 is not listed on IDEAS
    4. Kodila-Tedika, Oasis & Tcheta-Bampa, Albert, 2014. "Cold War and Institutional Quality: Some Empirical Evidence," MPRA Paper 53965, University Library of Munich, Germany.
    5. Popov, Vladimir, 2014. "Socialism is dead, long live socialism!," MPRA Paper 54294, University Library of Munich, Germany.
    6. José Antonio Alonso & Carlos Garcimartín, "undated". "Does Aid Hinder Tax Efforts? More Evidence," Discussion Papers 11/04, University of Nottingham, CREDIT.
    7. Javed, Omer, 2013. "Determinants of Institutional Quality: A Case Study of IMF Programme Countries," MPRA Paper 51344, University Library of Munich, Germany.
    8. Acar, Sevil & Dogruel, Fatma, 2012. "Sources of inequality in selected MENA countries," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 276-285.
    9. Kodila-Tedika, Oasis, 2018. "Natural Resource Governance: Does Social Media Matter?," MPRA Paper 84809, University Library of Munich, Germany.
    10. Hossein Mirshojaeian Hosseini & Shinji Kaneko, 2012. "Spatial Spillover of Governance and Institutional Quality: A Spatial Econometric Approach," IDEC DP2 Series 2-3, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    11. Gema Fabro & José Aixalá, 2013. "Do the Models of Institutional Quality Differ According to the Income Level of the Countries? The Case of the Low-Income Countries," Hacienda Pública Española, IEF, vol. 206(3), pages 11-26, September.
    12. Lien, Nguyen Phuong, 2015. "The impact of institutional quality on tax revenue in developing countries," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 5(10), pages 181-195, October.
    13. Mustafa ÜNVER & Julide Yalçýnkaya KOYUNCU, 2016. "The Impact of Poverty on Corruption," Journal of Economics Library, KSP Journals, vol. 3(4), pages 632-642, December.
    14. Nawaz, Saima, 2011. "The Institutions-Growth Nexus: Stages of Development," MPRA Paper 36961, University Library of Munich, Germany.
    15. Suwastika Naidu & Anand Chand, 2014. "Exploring the relationship between freedom from corruption and business governance in the Oceania region," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(6), pages 3489-3509, November.
    16. Ahmadov, Ingilab & Mammadov, Jeyhun & Aslanli, Kenan, 2013. "Assessment of Institutional Quality in Resource-Rich Caspian Basin Countries," MPRA Paper 47430, University Library of Munich, Germany.
    17. Khalid, Usman, 2015. "Why Trading with Dictators May Nevertheless Help the People: On the Interplay between Trade, Political Regimes and Economic Institutions," Working Papers 2015:15, Lund University, Department of Economics, revised 23 Jul 2015.
    18. Saima Nawaz & Nasir Iqbal & Muhammad Arshad Khan, 2014. "The Impact of Institutional Quality on Economic Growth: Panel Evidence," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(1), pages 15-31.
    19. Barasa, Laura & Knoben, Joris & Vermeulen, Patrick & Kimuyu, Peter & Kinyanjui, Bethuel, 2017. "Institutions, resources and innovation in East Africa: A firm level approach," Research Policy, Elsevier, vol. 46(1), pages 280-291.
    20. Jeyhun Mammadov & Assoc. Prof. Dr. Jeyhun Mammadov & Prof. Dr. Ingilab Ahmadov & PhD candidate, Kenan Aslanli, 2013. "Assessment of Institutional Quality in Resource Rich Caspian Basin Countries," International Conference on Energy, Regional Integration and Socio-economic Development 5994, EcoMod.
    21. Kathavate, Jay & Mallik, Girijasankar, 2012. "The impact of the Interaction between institutional quality and aid volatility on growth: theory and evidence," Economic Modelling, Elsevier, vol. 29(3), pages 716-724.

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