Abstract
A growing literature argues that division of powers matter for economic growth by increasing the security of property rights. However, less effort has been devoted to examining the political and institutional conditions under which property rights have economic effects. This paper emphasizes that the economic effects of property rights depend on the division of powers between veto players, meaning that the interaction of veto players and property rights matters for economic growth. This argument is tested empirically on a panel of developing countries. The results show that the economic effects of property rights increase significantly as power sharing between veto players increases. This suggests that property rights matter mainly in the context of institutions dividing political powers between veto players.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
