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Demographic structure and the security of property rights: The role of development and democracy

Listed author(s):
  • Harms, Philipp
  • an de Meulen, Philipp

It is often argued that countries with a high population share of children and young workers should attract large capital inflows from aging industrialized economies. However, many of these countries deter foreign investors by a high risk of creeping or outright expropriation. In this paper we explore whether the correlation between countries' demographic structure and the perceived security of property rights reflects a causal relationship. We show that, in low-income countries, the ratio of young to old workers has a positive effect on the perceived security of property rights if the political system is sufficiently democratic. By contrast, this relationship cannot be observed in middle income countries.

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File URL: http://www.sciencedirect.com/science/article/pii/S0176268012000444
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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 29 (2013)
Issue (Month): C ()
Pages: 73-89

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Handle: RePEc:eee:poleco:v:29:y:2013:i:c:p:73-89
DOI: 10.1016/j.ejpoleco.2012.08.001
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

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