Abstract. This article provides a theoretical and empirical analysis of institutional dynamism in 38 sub-Saharan African countries, considering institutions as a form of capital. Empirical results show, using the generalized least squares method, the maximum likelihood method, the Akaike information criterion, the Bayes information criterion, and the Davidson and Mackinnon (1981) non-nested hypothesis test, that institutional change is fundamentally linked to political factors. Democracy, regime characteristics, autocracy, income inequality, and natural resource rents are fundamental to the institutional capital stock. However, the cultural environment is a determinant of institutional equilibrium, which is the central element in institutional determination in SSA countries.

Keywords: governance, institutional change, political factors, Generalized Least Squares, Sub-Saharan African.