Is there cross-country convergence in government quality? A non-parametric analysis

This note examines the distribution of government quality across 125 countries over the period 1984-2008. To this end, a non-parametric methodology is used to study the dynamics of the entire distribution. The results show the presence of a convergence process in governance outcomes across the sample countries throughout the study period, mainly due to the evolution experienced by those countries located at both ends of the distribution in 1984. Nevertheless, our estimates also suggest that the observed convergence will not continue indefinitely. Furthermore, the analysis carried out reveals that the level of government quality of neighbouring countries helps to explain a relatively important portion of the dispersion observed in the distribution under consideration, thus confirming the relevance of spatial effects in this context.