Economic and Institutional Determinants of the Rule of Law: A New Empirical Exploration

Abstract

The rule of law has proved to be significant in economic and social development and the functioning of political systems. At the same time, determinants of the rule of law remain far from transparent. Our study focuses on a novel set of economic and institutional factors potentially shaping the rule of law. The quantitative research is based on econometric and machine-learning apparatus and covers a global sample of countries. The output of our study exposes the crucial role of the quality of the law, access to justice and impartial public administration to assure the rule of law. Apart from the contribution to the literature, our conclusions may be helpful for policymakers.