State Capabilities in Colombian Municipalities:
Measurements and Determinants

with Guillermo Perry & Pedro Jiménez

Development Bank of Latin America-CAF:
Working Paper 2014/08.

Abstract

This paper constructs a comprehensive set of State Capacity indicators for Colombian municipalities, focusing in four basic governmental capabilities: fiscal, financial, physical and operational. First, a group of relevant variables was selected from a vast array of sources and classified into these four categories. Second, synthetic indicators were constructed using Principal Component Analysis (six in total as operational capabilities were further divided into three subcategories). These indicators allow us to study differential effects of a wide scope of potential determinants and controls upon each component. Such determinants included geographical features, natural resources, internal conflict, local political competition and early indigenous presence and immigration Controls included present income per capita and population density. This interdisciplinary variable selection provides a holistic explanation of State Capabilities related to public service delivery in Colombian municipalities.

Keywords:

State Capacity, Principal Component Analysis, Institutional Development

JEL Codes:

C38, F63, D02.