Based on Kaufmann, Kraay, and Mastruzzi (2004) and La Porta et al. (2004), RuleofLaw
is an index representing the extent to which agents have confidence in and abide by the rules of society in the year 2000. These include perceptions of the incidence of both violent
and non violent crime, the effectiveness and predictability of the judiciary, and the
enforceability of contracts. This estimate ranges from − 2.5 to 2.5, with higher scores
implying greater legal enforcement and better investor-protection.