We estimate the respective contributions of institutions, geography, and trade in determining income levels around the world, using recently developed instruments for institutions and trade. Our results indicate that the quality of institutions 'trumps' everything else. Once institutions are...

The paper discusses and tests the importance of institutions, geography, and terms of trade in Latin America during the Washington Consensus (WC) reform years. The paper argues that the WC overlooked these three important factors of growth, known as the "deep determinants of growth." The paper...