Are property rights institutions and financial development complements or substitutes? The case of private investment
This 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.
Volume (Year): 33 (2013)
Issue (Month): 2 ()
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