Property rights vs. Rule of law
Holds up after adjusting for income
Across 169 countries, Property rights and Rule of law rise and fall together at r = +0.59 (on a scale from −1 to +1, where 0 means no link). Comparing only countries with similar income (GDP per person) shrinks it to +0.40 (q = 0.015, allowing for the many pairs tested). Much of the first figure is that both measures rise with national income, but a weak positive link remains.
Comparing countries across the middle half of property rights, 0.639 to 0.859 points, rule of law is better by 0.655 points at the top of that range than the bottom. Comparing only countries with similar national income, the gap is 0.332 points.
Link before adjusting (r)+0.594p = 1.7e-17 · 169 countries
After adjusting for national income+0.398p = 9.4e-8 · likely range [+0.26, +0.52]
p, allowing for regions0.001standard error 0.062 · 7 regions
Check for luck (q)0.015across 17,292 pairs
How to read these.r runs from −1 (one goes up as the other goes down) to +1 (they rise together), and 0 means no link. Adjusting for national income means comparing countries with the same GDP per person, so differences in wealth can’t explain the link. Income is used in percentage terms, since an extra $1,000 means more to a poor country than to a rich one. p is how likely a link this strong would be if there were really none. Below 0.05 means it is unlikely to be chance. Very small values are written in short form: 1.1e-32 means a decimal point followed by 31 zeros and then 11, so very close to zero. The likely range is where the true figure probably lies, and a range that crosses zero means the link could easily be chance. Countries in the same region tend to resemble each other, so the third figure allows for that, which gives a fairer p. The standard error is the typical size of the error in r. Finally, testing this many pairs means some will look strong by luck alone. A q below 0.05 means this link is unlikely to be one of those.
Property rights · index (0-1)link with income +0.57 · moderate
Rule of law · index (approx. -2.5 to 2.5)link with income +0.72 · high
“Link with income” is how closely each measure tracks GDP per person across countries, from −1 to +1.
Every country as a dot
best-fit line line after adjusting
Four ways to measure the link
| Method | r | p | Countries |
|---|---|---|---|
| Standard (Pearson), not adjusted | +0.594 | 1.7e-17 | 169 |
| By rank (Spearman), not adjusted | +0.674 | 1.0e-23 | 169 |
| Standard (Pearson), adjusted for national income | +0.398 | 9.4e-8 | 169 |
| By rank (Spearman), adjusted for national income | +0.452 | 7.7e-10 | 169 |
The rank version uses only each country’s place in line, from lowest to highest, so a few extreme countries count for less. The adjusted and unadjusted versions use the same 169 countries: those that report both measures and GDP per person. So the gap between them comes from the adjustment, not from a change in which countries are counted. Drop in the size of r after adjusting: +0.196 (a minus sign means it grew).
How solid is it?
Leaving out one country at a time, r ranges from +0.371 (without TKM) to +0.438 (without RWA). The bar above shows that range on a scale from −1 to +1, with the solid line at the full result. The single country that moves r most: RWA (+0.041).
Within each region
Countries are not separate, unrelated cases, and neighbors share a lot. A link that holds inside each region is far more believable than one that shows up only when comparing regions.
| n | r | ||
|---|---|---|---|
| East Asia & Pacific | 21 | +0.74 | |
| Europe & Central Asia | 49 | +0.36 | |
| Latin America & Caribbean | 23 | +0.40 | |
| Middle East, North Africa, Afghanistan & Pakistan | 22 | +0.34 | |
| Sub-Saharan Africa | 46 | +0.51 |
By income third
If the link shows up only in the richest third of countries, it is a feature of rich countries, not a general pattern.
| n | r | ||
|---|---|---|---|
| Poorest third | 57 | +0.50 | |
| Middle third | 56 | +0.48 | |
| Richest third | 56 | +0.44 |
By largest religious group
Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.
| n | r | ||
|---|---|---|---|
| Christians | 99 | +0.30 | |
| Muslims | 49 | +0.36 |
By last European coloniser
Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.
| n | r | ||
|---|---|---|---|
| France | 25 | +0.46 | |
| Never a European colony | 21 | +0.64 | |
| Spain | 19 | +0.48 | |
| United Kingdom | 49 | +0.46 |
By official ideology
Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.
| n | r | ||
|---|---|---|---|
| Nationalist | 25 | +0.28 | |
| No strong official ideology | 117 | +0.40 |
By party system
Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.
| n | r | ||
|---|---|---|---|
| A few parties banned | 26 | +0.47 | |
| No parties banned | 122 | +0.29 |
Without outliers (countries far outside the middle half of countries on either measure, by more than one and a half times the width of that middle half): r = +0.407 after dropping 9 countries.
Two series, one country
Both measures over the years for one country you pick. The two charts are stacked so they share only the years along the bottom.
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Over time, within countries
Everything above compares countries with each other at one moment. This section compares each country only with itself over 29years. So a link here can’t come from anything about a country that stays the same, such as its history, geography, institutions or culture.
The link shows up within countries over time (r = +0.155) but mostly disappears in year-to-year changes (r = +0.052). That points to slow trends particular to each country, not the two measures moving together from year to year.
Across countries (adjusted)+0.398for comparison
Within countries+0.134each country vs itself
…and vs the same year elsewhere+0.155q = 0.049 · 176 countries
Year-on-year changes+0.052q = 0.082
Read with care.
- Almost all of this indicator's variation is between countries, not within them, so the within-country estimate rests on a small part of the data.
4,559 country-years (one country in one year), 176 countries, 1996–2024, about 26 years each on average. Share of the variation that happens within countries over time: 6% for Property rights, 4% for Rule of law. The margins of error allow for each country appearing many times, and for each year’s value being close to the year before.
Year-to-year changes are a cautious test, not a final answer. Looking only at changes from one year to the next removes each country’s own trends. But it also makes measurement mistakes louder, which pulls the results toward zero. A near-zero result here is weak evidence of no link, not proof.
With one measure years behind the other
Same year (lag 0): +0.155. A peak away from zero does not show which comes first. These series change slowly — this year’s value is close to last year’s. That makes the curve smooth and nearly symmetric, whatever produced the data. Even a sharp peak at one lag (a gap of some years) would not prove that one measure changes the other.
This curve peaks at the edge of the window (lag +10), so it is still drifting where the search stops. That pattern usually reflects a slow trend left over in the data, not a link with real timing. The peak value should not be read as the “true” link at the right lag.
The data
index (0-1) | index (approx. -2.5 to 2.5) | Years | |
|---|---|---|---|
| Germany DEU | 0.968 | 1.63 | 2025, 2024 |
| Iceland ISL | 0.959 | 1.63 | 2025, 2024 |
| Croatia HRV | 0.955 | 0.377 | 2025, 2024 |
| Spain ESP | 0.954 | 0.932 | 2025, 2024 |
| Belgium BEL | 0.954 | 1.28 | 2025, 2024 |
| France FRA | 0.946 | 0.979 | 2025, 2024 |
| Denmark DNK | 0.941 | 2 | 2025, 2024 |
| New Zealand NZL | 0.935 | 1.67 | 2025, 2024 |
| Norway NOR | 0.934 | 1.95 | 2025, 2024 |
| Lithuania LTU | 0.934 | 1.37 | 2025, 2024 |
| Sweden SWE | 0.933 | 1.73 | 2025, 2024 |
| Switzerland CHE | 0.931 | 1.76 | 2025, 2024 |
| Poland POL | 0.93 | 0.577 | 2025, 2024 |
| Slovak Republic SVK | 0.929 | 0.561 | 2025, 2024 |
| Luxembourg LUX | 0.929 | 1.76 | 2025, 2024 |
Coppedge, M. et al., V-Dem Dataset v16, Varieties of Democracy (V-Dem) Project; Lindberg, S. I. et al., Varieties of Party Identity and Organization (V-Party) Dataset. Read from the V-Dem Institute's vdemdata package.
Kaufmann, D. and A. Kraay, Worldwide Governance Indicators, World Bank
Sources
Property rights
Property rights index
V-Dem Institute, University of Gothenburg · CC BY-SA 4.0 · updated annual (V-Dem); V-Party per election, to 2019
How far people have the right to own, buy, inherit and sell private property, including land, from 0 (virtually no one) to 1 (virtually everyone). It combines V-Dem's expert ratings for men and for women. Limits can come from the law, from the state failing to enforce it, or from custom and religion. It is about the right to property, not how much property people actually own.
How this was computed
Data used: most recent value in 2010-2025; values come from 2024–2025. To adjust for income, each measure is first predicted from GDP per person (in percentage terms, on a log scale) with a straight-line fit. Only what is left over is then compared. This is called a partial correlation. The line is drawn the standard way (ordinary least squares), which picks the line that comes closest to all the countries at once. The error margins allow for countries in the same region resembling each other, using 7 World Bank regions. The q-value corrects for testing all 17,292 pairs at once, using the Benjamini–Hochberg method. Underlying data last updated V-Dem v16; V-Party v2. How the country data works · explore Property rights and Rule of law
This page shows that two measures go together. It does not show that Property rights changes Rule of law, or the reverse. These figures also describe countries, not individual people. See the ecological fallacy.
More links with Property rights or Rule of law
- Corruption Perceptions Index vs Rule of law before +0.95 → after adjusting +0.90
- Legal system and property rights (Fraser) vs Rule of law before +0.96 → after adjusting +0.89
- Political corruption vs Rule of law before -0.87 → after adjusting -0.77
- Civil liberties (FH) vs Rule of law before -0.79 → after adjusting -0.74
- Liberal democracy vs Rule of law before +0.81 → after adjusting +0.73
- Property rights vs Women's political empowerment before +0.78 → after adjusting +0.72
- Political rights (FH) vs Rule of law before -0.76 → after adjusting -0.69
- Freedom of association vs Property rights before +0.68 → after adjusting +0.66