Abstract
The impact of property rights on economic growth is examined using indicators provided by country risk evaluators to potential foreign investors. Indicators include evaluations of contract enforceability and risk of expropriation. Using these variables, property rights are found to have a greater impact on investment and growth than has previously been found for proxies such as the Gastil indices of liberties, and frequencies of revolutions, coups and political assassinations. Rates of convergence to U.S.‐level incomes increase notably when these property rights variables are included in growth regressions. These results are robust to the inclusion of measures of factor accumulation and of economic policy.
Keywords
ExpropriationProperty rightsEconomicsForeign direct investmentPolitical riskInvestment (military)Rule of lawInclusion (mineral)Convergence (economics)PoliticsMacroeconomicsPolitical scienceLawMarket economyMicroeconomics
Affiliated Institutions
Related Publications
Profit Constraints on Managerial Autonomy: Managerial Theory and the Unmaking of the Corporation President
The key assumption of managerial revolution theory-that ownership is separated from control in large corporations-has important consequences for theories of class structure and ...
Leadership and Organizational Performance: A Study of Large Corporations
Leadership influence in large complex organizations, though commonly assumed to be greatly significant, is normally not studied in terms of the variance accounted for in organiz...
Institutions, Institutional Change and Economic Performance
Continuing his groundbreaking analysis of economic structures, Douglass North develops an analytical framework for explaining the ways in which institutions and institutional ch...
Using Formative Measures in International Marketing Models: A Cautionary Tale Using Consumer Animosity as an Example
Purpose – Despite the increasing use of formative measurement models in literature, little is known about potential consequences for substantive theory testing. Against this bac...
Report 9: Impact of non-pharmaceutical interventions (NPIs) to reduce COVID19 mortality and healthcare demand
The global impact of COVID-19 has been profound, and the public health threat it represents is the most serious seen in a respiratory virus since the 1918 H1N1 influenza pandemi...
Publication Info
- Year
- 1995
- Type
- article
- Volume
- 7
- Issue
- 3
- Pages
- 207-227
- Citations
- 5063
- Access
- Closed
External Links
Social Impact
Altmetric
PlumX Metrics
Social media, news, blog, policy document mentions
Citation Metrics
5063
OpenAlex
Cite This
Stephen Knack,
Philip Keefer
(1995).
INSTITUTIONS AND ECONOMIC PERFORMANCE: CROSS‐COUNTRY TESTS USING ALTERNATIVE INSTITUTIONAL MEASURES.
Economics and Politics
, 7
(3)
, 207-227.
https://doi.org/10.1111/j.1468-0343.1995.tb00111.x
Identifiers
- DOI
- 10.1111/j.1468-0343.1995.tb00111.x