Institution Of Property Rights Research Articles

The curse of COVID-19 on foreign direct investment: assessing the role of property rights amidst the pandemic

ABSTRACT How did the COVID-19 pandemic impact foreign direct investment (FDI)? Following the outbreak of COVID-19, the overall volume of FDI inflows plummeted. However, COVID-19’s adverse effects on FDI in host countries exhibited discernible variability contingent upon the characteristics of domestic institutions, particularly the robustness of property rights within these countries. While host countries with strong property rights experienced a mitigated negative impact on FDI, contrary to general expectations, our analysis suggests that host countries with weak property rights may have also evaded a significant reduction in FDI inflows during the pandemic. This was primarily because both strong and weak property rights institutions in host countries conveyed positive signals to investors, which may have incentivized them to continue their investments even amidst the pandemic-induced crisis. Analyzing a time-series cross-sectional dataset of 126 developing countries covering the period 2009–2021, our findings reveal a U-shaped relationship between FDI and property rights. This implies that COVID-19’s impact manifested as a weak negative force on FDI inflows in host countries with weak property rights as well as those with strong property rights. Conversely, host countries with moderately strong property rights tended to suffer a substantial reduction in FDI.

Staying in the shadow or not? Remittances and the Shadow Economy

AbstractObjectiveThis study investigates the impact of remittances on the shadow economy and how domestic institutions, particularly property rights, moderate this relationship.MethodsWe employed a quantitative research method using panel data from developing countries from 1990 to 2018. We adopted both fixed‐effects and instrumental variable approaches to address possible endogeneity concerns between remittances and the shadow economy.ResultsThe results demonstrate that remittances are positively associated with the shadow economy's size. However, this positive effect is weaker in countries with strong property rights institutions. These findings remain robust across alternative measures of key variables and estimation techniques.ConclusionThe results suggest that foreign income in the form of remittances is an important determinant of the shadow economy in recipient countries. We believe that exploring the relationship between foreign sources of income and the decisions of economic actors to enter specific sectors warrants further investigation.

Twenty-Five Years of Polish Equity Market Performance: The Questionable Force Shaping Economic Property Rights Institutions

ABSTRACT This papere explores and quantifies the evolution of equity market performance and economic property rights dynamics in a reinstated market economy in Poland in the years 1995 to 2021. Using dynamic panel estimation techniques and monthly observations, we find evidence of convex relationships between both the wider stock market and the banking sector and property rights. The findings imply that moderately successful stock and banking markets support property rights, whereas bouts of market volatility indicate underlying preexisting economic and institutional weakness. The combined impact of fiscal policy and private debt further deteriorates institutions, suggesting capital misallocation.

Climate impact, institutional context, and national climate change adaptation IP protection rates

We study how the physical effects of climate change motivate entrepreneurs to develop and protect climate change adaptation (CCA) intellectual property (IP) in heterogeneous ways across countries. Integrating the sustainable entrepreneurship literature with the attention-based view, we show that country-level climate impact redirects managerial attention to the disruptive potential of climate change and spurs the sector into action to pursue and protect CCA-related IP. We also find that strong intellectual-property rights regulations and environmental movements in countries strengthen this effect. Our results extend the sustainable entrepreneurship literature by showing how the geography of climate impact explains how CCA IP protection efforts are distributed globally. Executive summaryWhy do entrepreneurs in some countries engage in more climate change adaptation (CCA) intellectual property (IP) protection than others? We postulate that entrepreneurs' attention is simultaneously situated in their country's climatic and institutional environments, and that these contexts shape the salience of CCA IP protection. Formally, we predict that entrepreneurs who would normally deprioritize CCA IP protection as an opportunity in the face of more urgent socioeconomic issues become more attuned to it as their country's climate impact increases. We then theorize institutional conditions that influence entrepreneurs' responsiveness to climate impact. First, we predict that stronger intellectual property rights institutions reduce entrepreneurs' uncertainty in capturing rents from their CCA IP and hence strengthen the relationship between climate impact and CCA IP protection. Second, we predict that informal institutions aligned with environmental movements increase the salience of climate impacts to corporate entrepreneurs by spurring their interests in environmental issues and hence also strengthen the climate impact-CCA IP protection relationship. Our empirical analyses using 689 country-year observations consisting of 95 countries over the period 2005 to 2015 reveal that country-level climate impact drives CCA IP protection, especially when there are strong intellectual property rights (IPR) regimes and environmental movements.

The Right of Ownership and Legal Protection in Kosovo’

Background: The Republic of Kosovo is a country located in Southeast Europe with partial diplomatic recognition. Kosovo declared its independence on 17 February 2008, and has since gained diplomatic recognition from 116 member states of the United Nations. On 22 July 2010, the International Court of Justice rendered an advisory opinion on the legality of Kosovo’s declaration of independence, which was not in violation of neither general principles of international law, nor specific international law. In 2022, Kosovo filed a formal application to become a member of the European Union. In the Republic of Kosovo, the Constitution is the highest legal act. Laws and other legal acts shall be in accordance with this Constitution. Civil law is not codified but divided into separate laws. The property right is regulated by the Law on Property and Other Real Rights Law No. 03/ L-154. Property rights and other real rights in the Republic of Kosovo originate from this law. Keeping this in mind, in our article, we are going to highlight the range of problems related to property rights’ regulation and protection, including gaps in primary and secondary legislation, analysing case law, courts, state attorneys, and administrative authorities’ activities. Methods: In this paper, we analyse the institution of property rights. We used comparative and analytical methods based on the current legislation in Kosovo, utilising resources from the former Yugoslavia. Additionally, we used some historical methods to derive concrete results. Kosovo has inherited the relics of the former Yugoslav legal system; building a new system is a challenge in and of itself. In the context of property law in general, its legal protection is crucial for the owner to use and dispose of his property. Results and Conclusions: With the knowledge that the institution of property law is one of the main institutions of civil law, and is the fundamental institution of real law, we have analysed this law institution as a constitutional principle, regulated by special laws in Kosovo. Additionally, given the importance of the property institution, Kosovo has adopted laws that protect property rights, enjoying civil legal protection, criminal legal protection, and international protection. These laws should be in accordance with the country’s Constitution, with international human rights instruments, as well as with EU legislation.

DAMAGE TO THE EDUCATION SECTOR DURING THE WAR. WAYS OF INFLUENCE AND RECONSTRUCTION

Goal. The article discusses the main features of behavioral economics as a new section of economic theory. The new direction in theory is a reflection of the actual change in the model of human behavior, the impact of the digital economy on the individual and the transformation of property relations under the influence of the market environment, which brings to the fore the issues of recognition of rules, the definition of reputation as a level of trust and economic ethics. It is shown that serious shifts in property relations in the behavioral economy act as evidence of the profound nature of the changes in the institution of property rights under the influence of ethical, social, psychological and other behavioral assumptions in economic behavior. Methodology. The study is based on dialectics as a scientific and philosophical method of knowledge, a systematic approach, analytical and expert economic method. First of all, behavioral economics relies on observation and experimentation. A distinctive feature of modern research methods has been the development of an economic model of human behavior based on and influenced by empirical facts collected in the field of behavioral and experimental economics. In essence, the paper uses an interdisciplinary methodology, formed by the efforts of both economists and psychologists, is an example of productive interaction between theoretical and experimental sciences. Results. The article systematically and comprehensively analyzes the specificity of behavioral institutions inherent in the digital economy. It has been revealed that academic economists have come to the realization that not only economic, but also all social institutions, the system of norms and rules, moral values are not only important, but vital for the transformation of all types of property, at the same time the role of the institute of property rights is increasing. It is proved that moral norms are not enough to ensure a climate of trust in the economy. It has been argued that it is especially important to minimize transactional losses by achieving a high level of trust of all agents in the leading economic institutions in conditions of decline in economic and business activity. Scientific novelty. Theoretically proved that behavioral economics is formed as a new intellectual platform of scientific community, a new type of scientific thinking, explicitly taking into account psychological, moral and other behavioral assumptions in economic behavior. It is proved that today the digital economy fundamentally changes the model of the institution of property rights, forms innovative business models, which become an important core of behavioral economics. It is indicated that trust forms the reputation of the subjects and institutions of the behavioral economy. Practical Significance. The practical conclusions of the article are that behavioral economics is a new and promising area of research, which has proposed a completely new model of the individual in the economy and has largely changed the view of modern economic science. Behavioral economics has shown and proved how much human behavior in real life deviates from ideal rational behavior. The reasons for modification of the human model in economics under the influence of various economic, social, psychological and other factors are given. In behavioral economics the problem of formation of new forms of realization of institute of property rights is actual, and any paradigm of behavioral economics should solve the problem of trust in interrelations between economic subjects in preservation of property rights system.

Institutional quality, asset specificity, and foreign direct investment

This article demonstrates that MNC's foreign direct investment decision is linked with institutional quality and hinges on the asset-specificity intensity of FDI. Using a comprehensive global FDI database between 2003 and 2019, our results show that MNCs tend to engage in FDI of high asset-specificity in countries with superior institutional quality, while they launch FDI of low asset-specificity in countries with inferior institutional quality. Moreover, when engaging in FDI of high asset-specificity, MNCs take property rights institutions more seriously, and prefer the sole proprietorship model to the joint venture model there.

BEHAVIORAL INSTITUTIONS OF THE DIGITAL ECONOMY: IMPACT ON HUMAN BEHAVIOR, TRANSFORMATION OF PROPERTY RELATIONS AND LEVELS OF TRUST

Goal. The article discusses the main features of behavioral economics as a new section of economic theory. The new direction in theory is a reflection of the actual change in the model of human behavior, the impact of the digital economy on the individual and the transformation of property relations under the influence of the market environment, which brings to the fore the issues of recognition of rules, the definition of reputation as a level of trust and economic ethics. It is shown that serious shifts in property relations in the behavioral economy act as evidence of the profound nature of the changes in the institution of property rights under the influence of ethical, social, psychological and other behavioral assumptions in economic behavior. Methodology. The study is based on dialectics as a scientific and philosophical method of knowledge, a systematic approach, analytical and expert economic method. First of all, behavioral economics relies on observation and experimentation. A distinctive feature of modern research methods has been the development of an economic model of human behavior based on and influenced by empirical facts collected in the field of behavioral and experimental economics. In essence, the paper uses an interdisciplinary methodology, formed by the efforts of both economists and psychologists, is an example of productive interaction between theoretical and experimental sciences. Results. The article systematically and comprehensively analyzes the specificity of behavioral institutions inherent in the digital economy. It has been revealed that academic economists have come to the realization that not only economic, but also all social institutions, the system of norms and rules, moral values are not only important, but vital for the transformation of all types of property, at the same time the role of the institute of property rights is increasing. It is proved that moral norms are not enough to ensure a climate of trust in the economy. It has been argued that it is especially important to minimize transactional losses by achieving a high level of trust of all agents in the leading economic institutions in conditions of decline in economic and business activity. Scientific novelty. Theoretically proved that behavioral economics is formed as a new intellectual platform of scientific community, a new type of scientific thinking, explicitly taking into account psychological, moral and other behavioral assumptions in economic behavior. It is proved that today the digital economy fundamentally changes the model of the institution of property rights, forms innovative business models, which become an important core of behavioral economics. It is indicated that trust forms the reputation of the subjects and institutions of the behavioral economy. Practical Significance. The practical conclusions of the article are that behavioral economics is a new and promising area of research, which has proposed a completely new model of the individual in the economy and has largely changed the view of modern economic science. Behavioral economics has shown and proved how much human behavior in real life deviates from ideal rational behavior. The reasons for modification of the human model in economics under the influence of various economic, social, psychological and other factors are given. In behavioral economics the problem of formation of new forms of realization of institute of property rights is actual, and any paradigm of behavioral economics should solve the problem of trust in interrelations between economic subjects in preservation of property rights system.

Big Pharma and monopoly capitalism: A long-term view

Are intellectual property rights institutions meant to foster innovative activity or conversely to secure appropriation and profitability? Taking stock of a long-term empirical evidence on the pharmaceutical sector in the US, we can hardly support IPRs intended as an innovation rewarding institution. According to our analysis, pharma patents have constituted legal barriers to protect intellectual monopolies rather than an incentive and a reward to innovative efforts. Patenting strategies appear to be quite aggressive in extending knowledge borders and enlarging the space protected from the possibility of infringement. This is also witnessed by the fact that patent applications are very skewed in the covered trade names and patent thickness expands over time. Conversely, the ratio of patents protecting new drugs approved by the FDA which draw upon government-sponsored research – as such, a mark for quality – falls. Firm-level analysis on profitability confirms strong correlation, restricted to publicly traded pharmaceutical companies, between patent portfolio and profit margins.

Sweet equality: Sugar, property rights, and land distribution in colonial Java

This article exploits a unique district-level dataset to investigate the relationship between sugar cultivation, property rights systems and land distribution in colonial Java around the turn of the twentieth century. We demonstrate a negative and statistically significant relationship between sugar cultivation and the landholder Gini. An IV strategy, employing a newly computed index of sugar suitability as instrument, suggests that this effect is causal. It is argued that sugar production in the nineteenth and early twentieth centuries stimulated the expansion and persistence of communal landholding. This communal landholding consequently led to more equally distributed plots among landholders in the early twentieth century. We emphasize the importance of local property rights institutions in mitigating the effects of export production on socioeconomic outcomes.

Mutual Dependence and Expectations of Cooperation

Why are some communities better than others at generating cooperative behavior? We argue that mutual dependence on collective social institutions (CSI) increases expectations of cooperation, a key building block for collective action. We examine the effects of mutual dependence by studying property rights institutions in rural Malawi and Zambia. We find that respondents expect their neighbors with customary property rights to be more cooperative than those with land titles—a situation of lower shared dependence on the CSI. A conjoint survey experiment with more than 7,000 respondents allows us to separate the impact of mutual dependence within the CSI from other salient characteristics, including migration status, wealth, and ethnicity. Additionally, we explore three forms of institutional obligations that help explain why reduced mutual dependence dampens expectations of cooperation. These findings provide a richer theoretical understanding of the preconditions for cooperative behavior and the interdependence that sustains collective action.

Scientists in the Corporate Research Environment

The symposium features four papers that examine understudied theoretical questions and phenomena related to the role of scientists in driving innovation in the private sector. The four papers use diverse theoretical frameworks, methodologies, levels of analysis, and empirical contexts to address an interesting set of questions. In particular, they investigate the influence of corporate board directors with a scientific background on firm innovation, the role of open science policies on scientist hiring in firms, and the impact of national intellectual property rights institutions on the direction of scientists’ research and their mobility at the international level. Together, they yield insights on how technology firms may leverage the particularities of their research environment to attract high quality scientific human capital and improve their innovative performance, thereby contributing to the establishment of their competitive advantage. The symposium will be of interest to scholars of strategic management (STR) and technology and innovation management (TIM). Independent Board and Firm Innovation: Does Director Background Matter? Presenter: Waverly W. Ding; U. of Maryland Presenter: Fenmian Wang; U. of International Business and Economics Presenter: Hong Zhang; Wuhan U. Presenter: Shi Chen; Southwestern U. of Finance and Economics The Big Reveal: Human Capital Shortage and Firm-level Publications Strategy in AI Presenter: Nuruddin Ahmed; MIT Sloan School of Management How TRIPS Implementation Influenced the Exportation of Science from Low- and Middle-Income Countries Presenter: Michael Blomfield; U. of Massachusetts, Amherst Presenter: Anita McGahan; U. of Toronto Presenter: Keyvan Vakili; London Business School IPR Institutions and Cross-Border Scientist Mobility: Evidence from Pharmaco-Genetics Presenter: Martin Hetu; U. of Toronto, Rotman School of Management Presenter: Denisa Mindruta; HEC Paris Presenter: William G. Mitchell; U. of Toronto Discussion Presenter: Matt Marx; Cornell U.

소유권 보호와 정치적 예산순환

This study examines the impact of property rights institutions on the political budget cycle. A simple equilibrium model of political budget cycles suggests that property rights institutions implicitly constrain the electoral cycle by making pre-election fiscal manipulation less effective in gaining votes. Using a panel of 64 democracies over the period 1987-2016, we confirm that a political budget cycle is conditional on the strength of property rights institutions. Countries with stronger property rights institutions experience a smaller electoral cycle. Our findings imply that property rights institutions may provide a socially efficient mechanism for protecting the welfare of taxpayers.

Unbundling institutional determinants of innovation

AbstractWhy are some nations wealthy, while others remain mired in poverty? Prior literature suggests technological innovation and strong institutions are uniquely conducive to long‐term economic growth. Property rights institutions (PRIs) afford protection from expropriation by the government and political elites, while contracting institutions (CIs) allow private parties to conduct commercial transactions. In this study, we systematically examine the relative effects of PRIs and CIs on innovation. Using an instrumental variable (IV) approach and two‐stage least squares regression framework, our results suggest that PRIs have a strong positive effect on innovation, while CIs do not. Constraint on executive, protection from expropriation of the government, and protection of private property are proxies for PRIs, while legal formalism, procedural complexity, and number of procedures are proxies for CIs. We find strong empirical evidence that PRIs have statistically significant effects both on innovation intensity and time lag in innovation adoption, while the impacts of CIs on these measures of innovation are generally insignificant. Our findings are relevant to policymakers today as developing countries look to innovation to reignite their economies and avoid the middle‐income trap.

Titling and beyond: Evidence from Dar es Salaam, Tanzania

Land titling has been a policy priority for developing country cities for decades. In Sub-Saharan Africa and across the world, tenure formalization has been promoted as a tool to improve the quality and value of urban housing. The track record of these projects, however, has generally been disappointing. Why is this? In this paper, we argue that project design has paid too little attention to contextual features of land markets in estimating the benefits of formalization to individual households. We draw on evidence from a case study city – Dar es Salaam, Tanzania – to show that in cities where broader property rights institutions are incomplete and informal sources of tenure security are strong, formal property rights may not be valued by households. This raises questions about the households’ willingness to pay for regularisation and suggests that complementary strategies to build trust in government and consolidate public benefits of titling will be needed to ensure that projects have a beneficial impact. • This paper examines the individual benefits of titling in urban areas. • It examines the theoretical case for titling and probes the validity of these expectations in a case study city. • Results reveal that the quality of formal and informal housing is similar and there is no market premium for formal documentation. • This likely reflects low trust in formal administration as well as strong informal arrangements. • The findings indicate that project design may benefit from reorientation towards the public benefits of titling.

The price of property rights: Institutions, finance, and economic growth

Using a unique data set of foreign equities traded on the London Stock Exchange (LSE) in the late 19th century, we study the relation between the security of property rights, finance, and growth. We find that British investors demanded a higher equity cost of capital from firms operating in countries with weak property-rights institutions. Further, country-level expropriation risk is negatively related to 19th-century capital flows and present-day economic and financial development. A simple equilibrium model of the protection of investor property rights and risk premia rationalizes these findings. This evidence indicates that institutional quality influences growth, in part, through its effect on the cost of capital and investment.

Специфика судебных споров, связанных с внедоговорным разделом совместно нажитого имущества супругов

The purpose of the study is to consider the features of litigation affecting the division of jointly acquired property. Research objectives: to study the development of the institution of property rights of spouses, to con-sider the types of legal regimes of property of spouses, to identify the main features when considering family disputes over the division of jointly acquired property. I used general scientific methods (dialectical, logical, sys-tematic), private scientific methods (historical, statistical, sociological), as well as special legal (comparative le-gal, formal legal). The problems of the emergence and consolidation of the institution of the legal regime of property relations of spouses in family law are considered. It is concluded that in Russia the legal regime of the legal property of spouses is mainly applied. This is due to historical continuity and the recent emergence of a market economy. Legal mechanisms for protecting spouses (former spouses) in the framework of disputes with creditors of the debtor spouse are noted. The main problematic points related to the determination of the composition of jointly acquired property have been studied. Attention is drawn to the fact that a spouse (ex-spouse) can apply to the court with a request to invalidate a transaction for the sale of jointly acquired property without his consent. The main evidence on disputes related to the division of property is indicated, with the determination of the particular importance of forensic examination. The question of alternative ways of resolving the conflict is touched upon. A method is proposed to reduce the risks of the parties when concluding a settlement agreement on the division of jointly acquired property.

THE IMPORTANCE OF THE INSTITUTIONS OF PROPERTY RIGHTS AND INFORMED CONSENT IN THE USE OF HUMAN BIOLOGICAL MATERIAL

The paper reveals the importance of the institutions of informed consent and property rights in relations with human biological material in the light of the study of foreign legislation and judicial practice. Purpose: to analyze the social relations that arise regarding human biological material through the prism of the institutions of property rights and informed consent for the receipt, storage, transfer and disposal of human biological material. Methods: logical, historical, systemic, structural-functional, comparative, analogies and modeling are used as general scientific research methods, special legal methods are used: formal-legal, comparative-legal, interpretation, legal modeling. Results: the study on the example of court cases considered in the United States concludes that there is a need to adjust domestic law in order to regulate relations and protect the rights of subjects of relations having an impact on human biological material.

An assessment of the legal framework governing land ownership is evolving in ukraine

The experience of carrying out reforms in the field of property relations regulation both in Ukraine and other countries shows the need to develop clear concepts taking into account the specifics of the country. Nowadays, we often find that the laws governing the institution of property rights, especially land ownership, do not meet the real needs of the producer of agricultural products. That is why the absence of contradictions between the demands of the population and existing legislation must be achieved at the legislative level.The article examines the development of legal regulation of land ownership in Ukraine. The process of reforming property relations in Ukraine since 1991 has been studied, in particular: the privatization process, the mechanism of acquiring property rights to real estate, registration of property rights and other rights to real estate, legal regulation of land cadastre. Legal regulation of the ownership of agricultural land in some EU member states is revealed. Using the forecasting method, the authors formulated recommendations for improving the legal regulation of land ownership in Ukraine.

Entrepreneurial Experience and Opportunity Exploitation: How Does the Context Matter?

We develop and test a multi-level framework postulating that both property rights institutions and entrepreneurial opportunities moderate the positive influence of prior entrepreneurial experience on opportunity-motivated entrepreneurship. We analyze this framework by exploiting a hierarchical dataset that spans 92 countries and a period of 16 years. Using the multi-level logit regression in conjunction with the instrumental variables approach, we find that the exogenous variation in property rights protection has both a direct and an indirect—through entrepreneurial experience—positive influence on the likelihood of becoming an opportunity-motivated entrepreneur. On the other hand, we find that while entrepreneurial opportunities increase the odds of observing opportunity-motivated entrepreneurs, they nevertheless weaken the positive effect of entrepreneurial experience on the likelihood of becoming an opportunity-motivated entrepreneur.