Abstract
In this paper we estimate the Municipal Institutional Quality Index for Bahia in 2012. From IQIM-2012 and IQIM-2000 we study the intertemporal dynamics of institutional quality of Bahia municipalities and their possible spatial patterns. The results showed that the majority of municipalities in Bahia has low community participation in municipal councils and low financial capacity. On the other hand, a considerable part of the state's municipalities presents good indicators of managerial capacity. Based on the data we can see a slight positive change in municipal institutional quality in Bahia. On the other hand, there are few spatial correlation signals of IQIM suggesting the existence of institutional heterogeneity in state.
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