Abstract
This article argues that the impact of income on institutional quality depends on state capture, and that a rise in income contributes to institutional development only if the degree of state capture is low.
Notes
1 For reasons of convenience, we redefined the original property right index such that higher values correspond to more protection. The same holds for the state capture proxy.
2 We also estimate these equations (by applying/using) with OLS. Results are qualitatively the same