Some studies show the impact of institutions on economic development and conclude that democracy and the rule of law facilitate development, whereas autocracy and dictatorship do not (for example, \citealp*{Acemoglu_2000}). But some economists also argue that a powerful government and strategic interventions are better strategies to achieve development \citep*{Lin_2010}. Empirically, countries that are under significant government intervention generally lag behind in development, such as communist regimes, including Cuba, Laos and North Korea. By contrast, market-oriented economies, such as Latin American countries, perform well in early development stages; however, they later suffer from the middle-income trap.