Differences in the quality of institutions may explain differences in per capita income. Yet, we know relatively little … and administrative institutional quality. Using cross-section and panel methods on a large sample of countries from the …

world, using recently developed instruments for institutions and trade. Our results indicate that the quality of … on incomes, although they have a strong indirect effect by influencing the quality of institutions. Similarly, once ….e., negative) sign, although trade too has a positive effect on institutional quality. We relate our results to recent literature …

levels using recently developed instruments for institutions and trade. Our results indicate that the quality of institutions …, insignificant direct effect on income, although trade too has a positive effect on institutional quality. We relate our results to …