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Property Rights Institutions and Firm Performance: A Cross-Country Analysis

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Author Info

  • Yasar, Mahmut
  • Paul, Catherine J. Morrison
  • Ward, Michael R.

Abstract

Summary This paper empirically examines the link between firms' performance and institutional quality using data for firms in 52 countries. We control for potential endogeneity by instruments alternatively based on legal origin and "related-firm" institutions, and by a "bribery" variable. We also use two indicators of institutional quality: firms' expectations that their contractual and property rights will be protected by the legal system, and a property rights index from The Heritage Foundation. We incorporate firm-specific characteristics including industry type and international linkages. We find significantly positive relationships between firms' performance and perceived property rights protection independent of other observable firm characteristics.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 4 (April)
Pages: 648-661

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:4:p:648-661

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: legal enforcement property rights; institutions firm performance productivity; cross-country analysis;

References

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Cited by:
  1. Boehe, Dirk Michael & Barin Cruz, Luciano, 2013. "Gender and Microfinance Performance: Why Does the Institutional Context Matter?," World Development, Elsevier, vol. 47(C), pages 121-135.
  2. Yasar, Mahmut, 2013. "Political Influence of Exporting and Import-Competing Firms: Evidence from Eastern European and Central Asian Countries," World Development, Elsevier, vol. 51(C), pages 154-168.
  3. Cosmin Marinescu, 2013. "Institutional Quality of the Business Environment: Some European Practices in a Comparative Analysis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(33), pages 270-287, February.

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