Threats to Security of Property Rights in a Transition Economy: An Empirical Perspective

61 Pages Posted: 28 May 2015

See all articles by Rostislav Kapeliushnikov

Rostislav Kapeliushnikov

National Research University Higher School of Economics; Primakov National Research Institute of World Economy and International Relations

Andrei Kuznetsov

University of Central Lancashire - Lancashire School of Business and Enterprise

Natalia Demina

Nottingham University Business School

Olga Kuznetsova

Manchester Metropolitan University Buisness School

Date Written: 2013

Abstract

Effective property rights protection plays a fundamental role in promoting economic performance. Yet measurement problems make the relationship between property rights and entrepreneurship an ambiguous issue. As an advancement on previous research in this paper we propose a new approach to the evaluation of the security of property rights based on direct measures that overcomes some limitations of previous studies. We apply this new metrics to a survey of manufacturing firms in Russia to identifying the economic effects associated with the lack of property protection in a transition economy. Our analysis supports the view that there is a close relationship between institutions, property rights and economic growth. Our findings confirm that redistributive risks provide a depressing effect on investment and innovative activity of manufacturing enterprises and potentially result in a huge loss in efficiency and economic growth, which in other institutional settings could have been avoided.

Keywords: property rights; economic institutions; economic growth

Suggested Citation

Kapeliushnikov, Rostislav and Kuznetsov, Andrei and Demina, Natalia and Kuznetsova, Olga, Threats to Security of Property Rights in a Transition Economy: An Empirical Perspective (2013). Journal of Comparative Economics, Vol. 41, No. 1, p. 245, 2013, Available at SSRN: https://ssrn.com/abstract=2611292

Rostislav Kapeliushnikov

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Primakov National Research Institute of World Economy and International Relations ( email )

Profsouznaya St., 23
Moscow GSP-7, 117997
Russia

Andrei Kuznetsov (Contact Author)

University of Central Lancashire - Lancashire School of Business and Enterprise ( email )

Preston, PR1 2HE
United Kingdom

Natalia Demina

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

Olga Kuznetsova

Manchester Metropolitan University Buisness School ( email )

Oxford Road
Manchester, M15 6BH
United Kingdom
+ 44 161 2476612 (Phone)

HOME PAGE: http://www2.business.mmu.ac.uk/staff/staffdetails.php?uref=375

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