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

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  • 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.

Suggested Citation

  • Yasar, Mahmut & Paul, Catherine J. Morrison & Ward, Michael R., 2011. "Property Rights Institutions and Firm Performance: A Cross-Country Analysis," World Development, Elsevier, vol. 39(4), pages 648-661, April.
  • Handle: RePEc:eee:wdevel:v:39:y:2011:i:4:p:648-661
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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, pages 121-135.
    2. 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.
    3. Wietzke, Frank-Borge, 2015. "Long-Term Consequences of Colonial Institutions and Human Capital Investments: Sub-National Evidence from Madagascar," World Development, Elsevier, pages 293-307.
    4. repec:bla:worlde:v:39:y:2016:i:12:p:2025-2045 is not listed on IDEAS
    5. Foster-McGregor N. & Pöschl J. & Stehrer R., 2014. "International R&D spillovers and business service innovation," MERIT Working Papers 080, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Yasar, Mahmut, 2013. "Political Influence of Exporting and Import-Competing Firms: Evidence from Eastern European and Central Asian Countries," World Development, Elsevier, pages 154-168.
    7. Xuefeng, Qian & Yaşar, Mahmut, 2016. "Export Market Diversification and Firm Productivity: Evidence from a Large Developing Country," World Development, Elsevier, pages 28-47.

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