Democracy, property rights and economic growth

Abstract

What does the global surge in democracy and capitalism portend for economic growth? The shift toward popular government is predicted by some to accelerate growth, by others to retard it. Often left out of the equation is property rights as a factor distinct from democratic rule. Using recent data on 59 less developed and transitional countries, this article explores the relationship among institutional factors and growth in the 1980s and early 1990s. Democratic freedoms and property rights are associated with the dependent variable, suggesting that national income in poor countries stands to gain from recent efforts to implant these institutions.

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

“…The positive effect of aggregate governance on growth was expected as most of the individual measures of governance showed positive effect (except for corruption measure). As good governance is expected to be a prerequisite for economic growth by providing a favourable climate for investments and other economic activities, these results are not surprising (Globerman and Shapiro [29]). Hence, it can be inferred that, governance in these regions is serving as a helping hand for growth through less cumbersome and friendly rules and regulations, and by appropriate enforcement of law.…”

Economic Freedom, Migration and Income Change among U.S. Metropolitan Areas

“…local government polies such as individual and corporate income tax rates) matters in how it affects individuals, businesses, and the ability of local governments to enact and carry-out particular policy decisions. At a global level, there is compelling evidence that good institutions-particularly private property, rule-of-law, freedom of entry and exit into occupations, and freedom to trade-create conditions that foster economic growth and improvements in the quality-of-life (Galor, 2011).Current research provides evidence that countries with lower capital and wage tax rates, fewer barriers of entry into markets, and rule of law, along with political stability and good governance, tend to have higher rates of economic growth, employment and entrepreneurship (Goldsmith, 1995;Ali, 1997;Farr et al, 1998;Ayal & Karras, 1998 Our goal in this paper is to explore how varying levels of government control affect the size and direction of migration and income among metropolitan areas within the United States-a federal state that contains multiple levels of governments. In particular, we investigate the impact of local government policy on revealed locational preferences using Tiebout's (1956) "vote with their feet" J. M. Shumway…”

“…Current research provides evidence that countries with lower capital and wage tax rates, fewer barriers of entry into markets, and rule of law, along with political stability and good governance, tend to have higher rates of economic growth, employment and entrepreneurship (Goldsmith, 1995;Ali, 1997;Farr et al, 1998;Ayal & Karras, 1998 Our goal in this paper is to explore how varying levels of government control affect the size and direction of migration and income among metropolitan areas within the United States-a federal state that contains multiple levels of governments. In particular, we investigate the impact of local government policy on revealed locational preferences using Tiebout's (1956) "vote with their feet" J. M. Shumway…”

Joint Impact of the Dimensions of Governance and Economic Freedom on Economic Growth in O.E.C.D. Nations: An Analysis with Controls for Budget Deficits and G8 Status

“…Property rights (PR), which is another form of economic freedom, constitutes a moving force in the quest to accumulate private property in a market-driven environment. Secure property rights provide people the confidence to undertake entrepreneurial activities, to save, and to invest (Goldsmith, 1995;Heckelman, 2000). The fifth economic freedom measure considered here is GSF, government size freedom.…”