“…The literature suggests that the geographical and historical characteristics would indirectly affect economic performance through the colonial heritage, but not directly. Suzuki et al (2022), Nakabashi (2021), Pereira et al (2021), Jahan et al (2020), Souza (2019), Leivas and Dos Santos (2018), Niquito et al (2018), Musacchio et al (2014), Nakabashi et al (2013), Naritomi et al (2012), Mattos et al (2012), Naritomi (2007), and Menezes-Filho et al (2006) are some of the studies addressing the relationship between institutions and development in Brazil. Their results highlight the importance of institutional quality in determining income levels and inequality.…”