Levels Of Property Rights Research Articles

The nexus between entrepreneurship and property rights: role of legal origin in entrepreneurship and property rights

ABSTRACT Understanding the institutional context in each country that influences entrepreneurship is essential. This study examines a functional form of property rights in entrepreneurship by legal origin. Our study uses data published by the Global Entrepreneurship Monitor. We explored the correlation between entrepreneurship and property rights using macro data for 51 countries from 2001 to 2020, categorizing the countries into four types of legal origin. The results showed that the form of function between entrepreneurship and property rights differs according to the legal origin. The association between entrepreneurship and property rights showed an upward trend in English and German legal-origin countries but a gradual quadratic bell curve trend in French legal-origin countries. The association between property rights and entrepreneurship was irrelevant in countries with inherited Scandinavian legal origins. The observation of countries by legal origin revealed that expanding property rights does not necessarily promote entrepreneurship. Therefore, the study recommends that the level of property rights that can be adjusted to one’s institution be determined according to the variety of capitalism.

Wandering in the gray: The pricing of housing restricted by land use regulation in Beijing, China

Many informalities exist in the provision of affordable housing in transitional economies such as China. China’s diverse profile of informal housing demands a broader definition of informality that includes both the absence/presence and degree of property rights. In this study, we investigate the distinct phenomenon of residential housing built on commercial use land, termed commercial land (CL) housing. CL housing is characterized by incomplete property rights because it violates regulated land uses, which is further exacerbated by policies aimed at enforcing the land use regulation. The changes in the degree of property rights of CL housing provide a natural experiment to improve understanding of the dynamics of the informal housing market in China. Drawing on a large database of housing transactions in the city of Beijing, our results suggest that on average, CL housing is priced 30% lower than formal commodity housing, increasing to over 60% in situations with a lower level of property rights. The loss in value of CL housing due to government regulation amounts to 11,483 RMB (equivalent to US $1771) per square meter. We also find evidence that CL housing facilitates investment, which may have declined as a result of the regulated CL market. Overall, our findings are of theoretical and empirical significance for understanding informal housing development in China, involving complex and dynamic property rights and requiring government regulation to address housing informality.

Natural Resources, Property Rights, and the Domestic Logic of BIT Signing

In contrast to the substantial scholarship on whether bilateral investment treaties (BITs) increase foreign direct investment (FDI), there is less work on what drives governments to sign these treaties in the first place. I develop a theory of treaty signing that emphasizes the domestic factors that motivate a government to sign BITs. Using a panel dataset of developing countries from 1960 to 2010, I find that governments scarce in natural resources are more likely to sign BITs compared to their richer counterparts. In addition, governments with middle levels of property rights are more likely to sign BITs compared to those with low or high levels. Finally, the most likely BIT signers are resource-scarce countries with middle levels of property rights. That strategic dynamics exist in BIT signing has implications for assessing the effects of these treaties in other issue areas such as trade, human rights, and the environment.

Effect of Mandatory IFRS Adoption on Accounting-Based Prediction Models for CDS Spreads

In this study, we examine the effects of mandatory IFRS adoption on accounting-based prediction models of CDS spreads for a sample of 292 firms in 16 countries. In our examination, we estimate the models for both financial and nonfinancial firms before and after mandatory IFRS adoption. We find that mean and median absolute percentage prediction errors are larger for both financial and non-financial firms after mandatory IFRS adoption. We also estimate accounting-based prediction models of CDS spreads separately for financial and non-financial US firms as a benchmark. Although US firms also show an increase in the mean and median absolute percentages of prediction errors over the same period, our findings from regressions that use a difference-in-difference design indicate that the increase is significantly greater for firms in countries that adopted IFRS mandatorily. We also find that in the post-adoption period, prediction errors are larger for firms in countries with weaker institutions such as low levels of property rights and more restrictive access to credit.

The Evaluation of Investment Cooperation of Ukraine with EU Countries

The article investigates and evaluates the investment cooperation of Ukraine with the EU. The volume, structure and dynamics of investment flows between Ukraine and the European Union are analyzed. The main problems of cooperation between Ukraine and the EU are formed, in particular: the volume of foreign direct investment (FDI) in Ukraine from the EU is directed mainly to those sectors of the economy where it is possible quickly to make a profit (for example, in financial activities), while investment in priority sectors of the economy of Ukraine, aimed at a long-term growth, is insufficient. In addition, during the analysis of the investment market of Ukraine problematic aspects were found, such as: the existence of a tendency to invest in offshore zones, a low differentiation of foreign investors for donor countries and a sharp imbalance in the structure of FDI in the economy of Ukraine. The political instability, unpredictability of a state power, lack of independent judiciary (abuse of courts), corporate raiding, prosecution by tax authorities, shortcomings in the implementation of laws, delays and lack of transparency in VAT refund, corruption and the low level of property rights’ protection demonstrate the inability to build long-term plans with EU member states.
 Measures are proposed to improve investment cooperation between Ukraine and the EU in the context of deepening European integration processes, as follow: 1) bringing the strategy of attracting foreign investment in accordance with the needs of the country; 2) providing European investors with the necessary system support (for example, in business registration, attracting personnel); 3) creating the necessary conditions for the further implementation of the liberalization of the legal framework for the free movement of FDI in accordance with EU rules; 4) close cooperation with FDI donor countries; 5) providing conditions for improvement of technical and technological conditions of domestic enterprises; 6) production intensification on an innovative basis, etc.

The Role of Property Rights in the Relationship between Capital Flows and Economic Growth in SSA: Do Natural Resources Endowment and Country Income Level Matter?

AbstractThis paper studies the role played by the quality of property rights in the linkages of international capital flows into sub‐Saharan African (SSA) economies. Using panel data of 36 SSA countries over the period 1996–2015 and the ARDL procedure with the Pooled Mean Group regression method appropriate for non‐stationary panel data estimation, we account for the joint effects of property rights quality and openness to foreign capital flows on economic growth. We uncover the existence of a property rights quality threshold beyond which property rights either amplifies the spillovers effects or attenuates the negative effect of capital flows on economic growth. For instance, it takes a level of property rights of at least 60 to have a positive long‐term impact of capital flows on economic growth in natural resource‐poor African countries. The quality of property rights matters more to obtain spillover effects of capital flows on growth in natural resource‐poor countries than in their peer natural resource‐rich countries. Finally, with regard to the countries' income levels, capital flows have significant long‐term spillovers effects on economic growth in advanced African economies than in their low‐income peers.

The Rule of Law and Economic Growth in the Balkan States

The main aim of the paper is to evaluate whether the rule of law affects economic growth in the Balkan states. The reference period is the period 2000--2015 due to data availability. As indicators of the legal environment the Rule of Law Index (the Worldwide Governance Indicators) and Property Rights Index (the Index of Economic Freedom) are employed. The paper uses panel data regression analysis (OLS with fixed effects) for the purpose of identification and quantification. The results indicate that improvement of the rule of law has not statistically significant effect on growth in the Balkan countries. On the other hand, the higher level of property rights might support economic development in the countries, but simultaneously the positive changes prove to be in five-year horizon.

Does innovation-orientation lead to retail industry growth? Empirical evidence from patent analysis

Competitiveness and complexity in the retail industry are increasing due to rapid technological changes and diffusion. Patent analysis is largely used in innovation studies to assess and monitor technological changes in different sectors. The aim of this paper is to provide a comprehensive view of the innovative forces affecting the retailing sector, by focusing on the evaluation of innovation levels through the classification and analysis of patented innovations. The findings show that retailers might shift to more innovation-oriented strategies in order to propose innovative consumer solutions, due to the support of the technology advancements highlighted by the strong patent track record. Our study contributes to the literature by providing empirical evidence of critical areas for innovation in retailing and by offering bibliometric and patent analytical methods measures relative to the innovative forces affecting retailing, which might push the sector to be increasingly an innovation-oriented one. Finally, the high level of property rights (defined by the huge amount of patents) pushes retailers to invest more on acquiring patented technologies to achieve advantages over competitors or to adopt novel management practices as substitutes for patents.

Property rights and the stock market-growth nexus

Using threshold estimation techniques, this study examines whether the growth effect of stock market development differs according to the different levels of property rights and minority shareholders protection in a cross-section of 85 jurisdictions during the post-crisis period. The results demonstrate that the impact of stock market liquidity on growth is positive and significant only in jurisdictions where there is high level of property rights protection. Similar effect is discerned in the case of strong minority shareholders protection. Using the market size as a measure of stock market development, the paper also documents a positive growth effect of market size when property rights and minority shareholders protection are strong. However, there is mixed evidence in the low to medium degrees of protection. Further analyses using other broader governance indicators as threshold variables and instrumental variable threshold regressions reaffirm the main findings. The study upholds the “better finance, more growth” proposition and contributes to the identification of thresholds above which institutional quality can positively shape the impact of stock market on economic growth.

Property Rights and Forest Commons

AbstractAlthough property rights have been linked to a variety of positive social outcomes at the macro‐level, less research focuses on how property rights affect the benefits that actors receive at the micro‐level. This article examines property rights to a common‐pool resource (CPR) that are asymmetrically allocated among users, and presents a theoretical argument that property rights affect the allocation of resource benefits in two important ways. First, users with extensive property rights receive more benefits than users with limited property rights. Second, users with the power to influence how community rules are enforced—for example, landholders and ethnic majorities—more effectively define and defend their property and thus receive disproportionate CPR benefits compared to users with similar levels of property rights, but with less power. Using household‐level survey data in Bolivia, Kenya, Mexico, and Uganda, collected after a period of property rights decentralization, the empirical analysis finds support for these propositions. We conclude that power critically moderates the effects of property rights on the commons.

The Influence of the Political Regime on Property Rights in Post-Soviet Russia

Security degree and specification level of property rights are keys for successful economic and social modernization in Russia. In the research, the attempt of evaluating the nature of political influences on evolution of property rights is made. Chronologically research captures the period from 1985 (period of Perestroika) to 2012. According to the author’s claim, such political parameters, as the way of power legitimation, actors’ access to the economic, military and symbolical resources, made major impact on the formation of property rights in Russia. DOI: 10.5901/mjss.2013.v4n10p241

The Effects of Transaction Costs, Landlord and Tenant Practices and Property Rights on Foreign Real Estate Investment

The purpose of this article is to examine the relationships between real estate market factors (transaction costs, landlord and tenant practices and property rights) and foreign real estate investments (FREI) after controlling for other relevant determinants of FREI. This article uses related observations from 38 countries to investigate the relationships between real estate market factors and FREI. Our analysis shows that countries with lower transaction costs and higher level of property rights attract greater amounts of FREI. Furthermore, our empirical results indicate that there is a positive and significant relationship between pro-landlord practices and FREI. JEL Classification: R3, D23, P26

The Growth Effects of Property Rights: The Role of Finance

Using a variety of statistical approaches, we show that the relationship between property rights and growth is nonlinear; stronger enforcement of property rights raises growth up to a point before growth begins to decline. We provide a simple theoretical rationale for this conclusion using a model with informational asymmetries in the financial sector. Stronger property rights have two opposing effects. On the one hand it increases capital formation and growth. On the other hand it encourages bad borrowing practices. Thus there exists an optimal level of property rights which maximizes growth. However, as financial markets mature, the negative effects associated with stronger property rights become weaker.

Intermediate levels of property rights and the emerging housing market in Ho Chi Minh City, Vietnam

Vietnam introduced a Policy of Renovation (‘Doi Moi’ Policy) to restructure the economy in 1986. Under this policy, the Land Use Right Certificate was introduced as a form of tenure for agricultural land and urban land, according to the Land Laws of 1987 and 1993, respectively. However, by 2001, most properties and/or land in Vietnam still did not have a legal title. Although Vietnam's land reforms in the 1990s provided some of the weakest private rights among the transition countries, big cities like Ho Chi Minh City are presently homes to thriving housing markets. Transactions of ‘property without a physical entity and legal title’ in the real estate market show how property ownership can be formed in order to operate within different institutional contexts. This paper highlights that ‘intermediate levels of property rights’ are the driving forces behind the thriving housing market in Ho Chi Minh City.

Levels of Property Rights, Levels of Law: A Case Study from the Northern Philippines

Among the upland Ibaloi of the northern Philippines, political and economic integration into the Philippine state has been informed by simplistic notions of local pattems of resource control and use. The view that minority tribal groups are 'communal', and the subsequent state efforts to privatize resource control, have resulted in the emergence of multiple levels of property rights. These, in turn, are manipulated by individuals in their economic strategies, a process which enhances and reinforces legal pluralism. The result has been to reduce agricultural productivity and to increase the level of conflict among community members. This article discusses the Ibaloi example to demonstrate the importance of re-examining our key concepts and approaches to property systems, in order to encompass factors of both structure and process. From September 1983 to August 1984 I was involved in a study of the social organization, productive technology and property system of the Ibaloi of northern Luzon, in the Philippines. The study was conducted in Kabayan, a community of wet-rice cultivators in the Agno River valley. The Ibaloi are one of many upland minority groups in the Cordillera Central who are being drawn into the national political and economic sphere. The study had two broad goals. The first, practical goal was to understand the social context of upland irrigation and the implications of that context for rural development planning. The second, theoretical goal was to gain insight into the group control of productive resources in a cognatic society. This article discusses several conclusions drawn from the research which together challenge a tendency to oversimplify non-Westem property systems in anthropological theory. This tendency results from several factors, including a piecemeal approach to the study of property systems, an overemphasis on synchronic data and the underestimation of the impact of plural jural systems in most modem societies. I show that this kind of oversimplification has also informed bureaucratic decisions which, in turn, undermine indigenous production systems among groups such as the Ibaloi. Drawing on the Ibaloi example, I emphasise the importance of demystifying property systems in non-Western societies. Several interrelated topics are addressed, namely: local group control of productive resources, especially in cognatic societies; the impact of political incorporation and economic integration on such control, especially in terms of legal pluralism; and the implications of the above for development planning, especially in irrigation. I conclude by arguing that, as in other areas of anthropology, our analysis of property systems must be informed by concepts both of structure and of process; our methodologies must