Governance and economic growth
AbstractBecause protection of property rights cannot be appropriated by any individual, it is widely recognized as being the state's responsibility. Moreover, recent empirical evidence suggests that protection of property rights leads to higher investment levels and faster growth. The extent of property rights protection differs significantly across countries. The author integrates the emergence of property rights within a simple growth framework. Drawing on North (1990), he presents a model where economic performance and enforcement of property rights may reinforce each other.Initial conditions determine the economy's convergence to a high-income or a low-income steady state. Existing empirical evidence offers tentative support for this theory.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3098.
Date of creation: 31 Jul 2003
Date of revision:
Judicial System Reform; Labor Policies; Economic Theory&Research; Environmental Economics&Policies; Common Property Resource Development; Economic Theory&Research; Inequality; Common Property Resource Development; Environmental Economics&Policies; Governance Indicators;
This paper has been announced in the following NEP Reports:
- NEP-ACC-2004-09-12 (Accounting & Auditing)
- NEP-ALL-2004-08-16 (All new papers)
- NEP-DEV-2004-08-16 (Development)
- NEP-MAC-2004-09-12 (Macroeconomics)
- NEP-PKE-2004-09-12 (Post Keynesian Economics)
- NEP-POL-2004-09-12 (Positive Political Economics)
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