Working Paper: CEPR ID: DP7243
Authors: Timothy J. Besley; Maitreesh Ghatak
Abstract: This chapter develops a unified analytical framework, drawing on and extending the existing literature on the subject, for studying the role of property rights in economic development. It addresses two fundamental and related questions concerning the relationship between property rights and economic activity. (i) What are the mechanisms through which property rights affect economic activity? (ii) What are the determinants of property rights? In answering these, it surveys some of the main empirical and theoretical ideas from the extensive literature on the topic.This paper will form a chapter for Volume V of the Handbook of Development Economics edited by Dani Rodrik and Mark Rosenzweig
Keywords: economic development; property rights
JEL Codes: K11; O17; P14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| insecure property rights (P14) | increased expropriation risk (H13) |
| increased expropriation risk (H13) | reduced investment (G31) |
| increased expropriation risk (H13) | reduced economic activity (F69) |
| insecure property rights (P14) | reduced investment (G31) |
| insecure property rights (P14) | reduced economic activity (F69) |
| insecure property rights (P14) | increased costs to protect assets (G32) |
| increased costs to protect assets (G32) | reduced economic productivity (O49) |
| secure property rights (P14) | facilitate trade (F10) |
| secure property rights (P14) | enhance economic efficiency (D61) |