Are property rights institutions and financial development complements or substitutes? The case of private investment
AbstractThis article explores whether the quality of the financial sector has an impact on the relationship between property rights institutions and private investment. Using dynamic panel techniques, we show that strong property rights promote increased private investment and that this positive effect is stronger in countries with poorer financial systems, suggesting that institutions and finance act as substitutes in their effect on investment.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 33 (2013)
Issue (Month): 2 ()
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Property rights institutions; financial development and private investment;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
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