The Determinants of Institutional Quality. More on the Debate

Abstract

3 ResumenEste trabajo aporta nuevos argumentos sobre los determinantes de la calidad institucional. De forma previa a la exposición del trabajo empírico, se discuten los criterios que deberían valorar la calidad de las instituciones. Posteriormente, se identifican los factores que conforme a estos criterios, determinan la calidad institucional. Los resultados obtenidos en el modelo estimado permiten inferir algunas conclusiones interesantes. La primera, que el nivel de desarrollo determina la calidad institucional: cuanto mayor es la primera, más alta es la segunda. En segundo lugar, la distribución del ingreso parece condicionar la calidad de las instituciones. Se requiere cierto grado de cohesión social para dotar de legitimidad y predictibilidad a las instituciones. En tercer lugar, un sistema impositivo adecuado se asocia positivamente con la mejora de la calidad institucional. Los impuestos proporcionan las rentas necesarias para generar calidad institucional, al mismo tiempo que crean una relación más estrecha y exigente entre el Estado y los ciudadanos. Finalmente, la educación mejora la calidad institucional. Por el contrario, algunas de las variables identificadas en la literatura, bien parecen no identificar la calidad institucional o bien tienen efectos indirectos, a través de las variables mencionadas.Palabras clave: Calidad institucional, distribución de ingresos, impuestos, educación. AbstractThis 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.

Do the Models of Institutional Quality Differ According to the Income Level of the Countries? The Case of the Low-Income Countries

“…in fact, recent studies have shown it to be a core factor to explain such quality. Alonso and garcimartín (2013) point out that the more educated the population is, the more transparency and dynamic institutions it demands, thus contributing to its own design and development 6 . some previous research -e.g.…”

Determinants of Institutional Quality: A Case Study of IMF Programme Countries

“…In another study, Alonso and Garcimartin (2013) pointed towards four attributes of institutional quality, from the perspective of static and dynamic, along with being predictable and credible. Moreover, Siba (2008, p. 10) employed, '"Governance Matters IV" data set constructed by Kaufmann et al (2005)' as a measure of institutional quality.…”

“…Openness is indicated in literature to be positively related with enhancing institutional quality (Rodrik et al, 2002;WEO, 2005) . Although Alonso and Garcimartin (2013) did not find the impact of openness to be significant, KOF Index of Globalization, with its multidimensional approach, has been included for checking possible significance.…”

“…Alesina and Perotti (1996), and Alonso and Garcimartin (2013), for instance, find education to be highly important for improving institutional quality. Here, net primary enrollment rates is taken to see the influence of level of education on institutional quality.…”

Determinants of entrepreneurs' views on the acceptability of tax evasion and the informal economy in Slovakia and Ukraine: an institutional asymmetry approach

“…Both are post-Soviet states that are making the transition from a command economy to a market economy with a similar cultural and institutional legacy of central planning (Alonso and Garcimartin, 2009). At the same time however, these countries are dissimilar in ways that have been deemed important in terms of influencing tax morality.…”