Exhibit 4.7: Average Income Per Quartile
IPRI QUARTILES AV. GDP P.C.
| Top 25 Percent | $32.994 |
| 2nd Quartile | $15.679 |
| 3rd Quartile | $7.665 |
| Bottom 25 | $4.294 |
In fact, citizens of countries in the top quartile in the IPRI ranking enjoy a per capita income that is more than seven times that of their counterparts in the bottom quartile. Essentially, for the whole IPRI country set a positive relation between the level in the IPRI rank and GDP per capita can be found, as demonstrated in Exhibit 4.8.6
Exhibit 4.8: Relation Between IPRI and GDP Per Capita (with Trendline)
The positively sloped trend line indicates that countries with stronger property rights protection enjoy a higher per capita income than countries at the lower end of the IPRI rating. Nevertheless, it must be emphasized that this is only an observable trend, not an unambiguously proven causality.
However, the correlation between the IPRI rating and GDP per capita amounts to a value of eightynine percent.
GDP per capita is measured in Purchasing Power Parity (PPP) rated US dollars and stems from the CIA factbook.
Study conducted by Alexandra C. Horst, 2006 Hernando de Soto Fellow
