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International property rights: the role of diversity

Author

Listed:
  • Jayoti Das
  • Cassandra E. DiRienzo

    (Elon University, USA)

Abstract

Using the International Index of Property Rights, this study explores the relationship between the quality of country level property rights and three measures of diversity: ethnic, linguistic, and religious. Past studies have assumed a linear relationship between various measures of diversity and economic outcomes, including property rights. The assumption of a linear relationship suggests that the estimated effect of diversity on the outcome will be the same for any change in diversity, regardless of the level diversity within the country. It is argued that the effects of diversity can have diminishing marginal effects on the quality of property rights. By relaxing the assumption of linearity, this analysis contributes to the growing literature on property rights. These relationships are explored using a cross-country data set and the results suggest that ethnic diversity has a diminishing, negative effect on the quality of property rights, while linguistic diversity has a diminishing, positive effect.

Suggested Citation

  • Jayoti Das & Cassandra E. DiRienzo, 2014. "International property rights: the role of diversity," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(4), pages 41-55, October-D.
    • Handle: RePEc:jda:journl:vol.48:year:2014:issue4:pp:41-55
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    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v048/48.4.das.html
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    Citations

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    Cited by:

    1. GOMADO, Kwamivi Mawuli, 2018. "Diversité ethnique et déforestation dans les pays en développement: identification des principaux canaux [Ethnic diversity and deforestation in developing countries: identifying the transmission ch," MPRA Paper 89380, University Library of Munich, Germany.

    More about this item

    Keywords

    Property Rights; Diversity; Diminishing Effects;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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