Comparing the Effects of Improving Institutions on per Capita Income in Oil-Exporting and Industrial Countries

This paper investigates whether the effect of improving economic and political institutions on per capita income in different countries is related to the current quality of their institutions. Econometric analysis of cross sectional data is applied to achieve the goal of the paper. In econometric section، the effect of improving institutions on per capita income of G20 countries is compared with the effect of it on per capita income of oil-exporting countries. The results show that the effect of improving institutions on per capita income in oil exporting countries، in which the performance of institutions is bad، is greater than G20 countries in which the good performance of institutions is visible. So oil exporting countries should try to perform constitution more accurately than G20 countries.