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Threats to security of property rights in a transition economy: An empirical perspective

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  • Kapeliushnikov, Rostislav
  • Kuznetsov, Andrei
  • Demina, Natalia
  • Kuznetsova, Olga

Abstract

Effective property rights protection plays a fundamental role in promoting economic performance. Yet measurement problems make the relationship between property rights and entrepreneurship an ambiguous issue. As an advancement on previous research in this paper we propose a new approach to the evaluation of the security of property rights based on direct measures that overcomes some limitations of previous studies. We apply this new metrics to a survey of manufacturing firms in Russia to identify the economic effects associated with the lack of property protection in a transition economy. Our analysis supports the view that there is a close relationship between institutions, property rights and economic growth. Our findings confirm that redistributive risks provide a depressing effect on investment and innovative activity of manufacturing enterprises and potentially result in a huge loss in efficiency and economic growth, which in other institutional settings could have been avoided.

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  • Kapeliushnikov, Rostislav & Kuznetsov, Andrei & Demina, Natalia & Kuznetsova, Olga, 2013. "Threats to security of property rights in a transition economy: An empirical perspective," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 245-264.
    • Handle: RePEc:eee:jcecon:v:41:y:2013:i:1:p:245-264
    DOI: 10.1016/j.jce.2012.05.002
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    3. Mai T.T. Duong & D. Ary A. Samsura & Erwin van der Krabben, 2020. "Land Conversion for Tourism Development under Vietnam’s Ambiguous Property Rights over Land," Land, MDPI, vol. 9(6), pages 1-24, June.
    4. Thanh Bao Nguyen & Erwin Van de Krabben & D. Ary A. Samsura, 2017. "A curious case of property privatization: two examples of the tragedy of the anticommons in Ho Chi Minh City-Vietnam," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 21(1), pages 72-90, January.
    5. Coates, Dennis & Mirkina, Irina, 2021. "Economic Freedom of the Russian Federation," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 51(1), January.
    6. Timothy Frye & Andrei Yakovlev, 2015. "Elections and Property Rights: Evidence from a Natural Experiment in Russia," HSE Working papers WP BRP 29/PS/2015, National Research University Higher School of Economics.
    7. Iwasaki, Ichiro & Ma, Xinxin & Mizobata, Satoshi, 2022. "Ownership structure and firm performance in emerging markets: A comparative meta-analysis of East European EU member states, Russia and China," Economic Systems, Elsevier, vol. 46(2).
    8. Petar Stankov, 2017. "Economic Freedom and Welfare Before and After the Crisis," Springer Books, Springer, number 978-3-319-62497-6, June.

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    More about this item

    Keywords

    Property rights; Economic institutions; Economic growth;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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