Can Rising Inequality and State of Governance Help Explain Fragmentation of State Institutions?

Md. Azmeer Rahman Sorder

Abstract

The study aims to study the impact of inequality and governance indicators on the fragmentation of state institutions across countries using the panel data regression method on a global sample of 158 countries and 12 years ranging from 2009 to 2020. This paper draws data from three primary sources: Fragile States Index, Positive Peace Index, and Freedom in the World. The study deploys a linear dynamic panel data model resorting two-step system GMM approach. The results fail to establish a generalized statement from the estimates. We observe countries by income status exhibiting positive estimates from inequality measures and mixed estimates from governance measures. Countries by freedom status show mostly negative impacts from inequality measures, while governance measures give mixed results.

Note: Replication code and associated data is available.