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Do Property Rights Institutions Matter at the Local Level? Evidence from Madagascar

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  • Alan Green
  • Christine Moser

Abstract

While several cross-country studies have demonstrated that property rights institutions are crucial for economic growth, empirical evidence of this relationship within countries is limited. This article analyses the link between property rights institutions and development at a local level with two rounds of a unique dataset covering almost all of Madagascar at a level akin to counties in the United States. We find robust evidence that property rights institutions in the form of formal land titles do matter for the emergence of large firms at very low administrative levels. We also find evidence that growth in enterprise development strengthens formal property rights, supporting the notion that the causality between institutions and growth runs both ways even at a low administrative level.

Suggested Citation

  • Alan Green & Christine Moser, 2013. "Do Property Rights Institutions Matter at the Local Level? Evidence from Madagascar," Journal of Development Studies, Taylor & Francis Journals, vol. 49(1), pages 95-109, January.
  • Handle: RePEc:taf:jdevst:v:49:y:2013:i:1:p:95-109
    DOI: 10.1080/00220388.2012.663906
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    References listed on IDEAS

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    1. Rohini Pande & Christopher Udry, 2005. "Institutions and Development:A View from Below," Working Papers 928, Economic Growth Center, Yale University.
    2. World Bank & International Finance Corporation, 2006. "Doing Business 2007 : How to Reform," World Bank Publications - Books, The World Bank Group, number 7245.
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    Cited by:

    1. Wietzke, Frank-Borge, 2015. "Long-Term Consequences of Colonial Institutions and Human Capital Investments: Sub-National Evidence from Madagascar," World Development, Elsevier, vol. 66(C), pages 293-307.
    2. Christopher B. Barrett & Teevrat Garg & Linden McBride, 2016. "Well-Being Dynamics and Poverty Traps," Annual Review of Resource Economics, Annual Reviews, vol. 8(1), pages 303-327, October.

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