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Property rights and their impact on the wealth of nations: a cross-country study

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  • Heitger, Bernhard

Abstract

This paper investigates the quality of property rights and long-term economic growth in an international cross-section of countries in 1975?1995. The empirical tests indicate that the impact of private property rights on growth is positive and simultaneously determined. Correcting for the simultaneity bias reveals a regression coefficient which is quite remarkable: A doubling in the index of the quality of property rights leads to a more than doubling in per capita incomes. In addition, private property rights also impact the 'traditional? determinants of economic growth. Thus it seems appropriate to class private property rights with the ultimate sources of economic growth.

Suggested Citation

  • Heitger, Bernhard, 2003. "Property rights and their impact on the wealth of nations: a cross-country study," Kiel Working Papers 1163, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1163
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    3. Weingart, Anne & Kirk, Michael, 2008. "Escaping poverty traps?: Collective action and property rights in post-war rural Cambodia," CAPRi working papers 89, International Food Policy Research Institute (IFPRI).

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    More about this item

    Keywords

    Economic Growth; Property Rights; Institutions;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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