The Determinants of Governance: A Cross-Country Analysis


  • Fahim Al-Marhubi

    1. Al-Marhubi: Assistant Professor, Department of Economics and Finance, College of Commerce and Economics, Sultan Qaboos University, P.O. Box 20, Al-Khoudh, P.C. 123, Sultanate of Oman. Phone 968-515833, Fax 968-514043, E-mail
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      The author is grateful for the many comments and suggestions made by an anonymous referee. Any remaining errors are his own.


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. (JEL D73, H11, K42)