The regional diffusion variable in the dataset represents the regional averages of central bank independence (CBI) scores. These averages are calculated for specific regions: Latin America and the Caribbean, Western Europe and North America, Eastern Europe and former Soviet countries, Africa and the Middle East, and Asia and the Pacific. For the estimation of these regional averages, the “Asia and the Pacific” region explicitly excludes the Middle East and former Soviet countries. This variable acts as a strong predictor of the level of CBI in individual countries within the same region, highlighting how regional norms or practices in central bank governance may influence individual countries​.