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The World Bank Economic Review 2004 18(2):253-287; doi:10.1093/wber/lhh041
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THE WORLD BANK ECONOMIC REVIEW, VOL. 18, NO. 2,
© The International Bank for Reconstruction and Development / THE WORLD BANK 2004; all rights reserved.

Governance Matters III: Governance Indicators for 1996, 1998, 2000, and 2002

Daniel Kaufmann, Aart Kraay, and Massimo Mastruzzi

Daniel Kaufmann is director at the World Bank Institute; his e-mail address is dkaufmann{at}worldbank.org. Aart Kraay is senior economist in the Development Research Group at the World Bank; his e-mail address is akraay{at}worldbank.org. Massimo Mastruzzi is research analyst at the World Bank Institute; his e-mail address is mmastruzzi{at}worldbank.org.

Abstract

Six dimensions of governance are estimated covering 199 countries and territories for four periods: 1996, 1998, 2000, and 2002. The indicators are based on several hundred individual variables measuring perceptions of governance drawn from 25 data sources constructed by 18 organizations. These individual measures are assigned to categories capturing key dimensions of governance. An unobserved-components model is used to construct six aggregate governance indicators in each of the four periods. Point estimates of the dimensions of governance are provided as well as the margins of errors for each country for the four periods. Methodological issues are also addressed, including tests for potential biases, and the interpretation and use of the data, given the estimated margins of errors for the indicators. The data and a Web-based graphical interface are available online at www.worldbank.org/wbi/governance/govdata2002/index.html.


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