Property Rights, Political Connections, and Corporate Investment

61 Pages Posted: 14 Aug 2019

See all articles by Meng Miao

Meng Miao

Renmin University of China - Hanqing Institute

Dragon Yongjun Tang

The University of Hong Kong - Faculty of Business and Economics

L. Colin Xu

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: August 12, 2019

Abstract

Despite the literature on rural land property rights, studies on urban land property rights are rare. This paper studies the impact of an urban land titling program on firm investment. It finds that the program leads to increased investment rate for titling firms, and the positive effect holds only for politically connected firms. The effects are likely causal, because they are more pronounced for firms that are more likely to benefit from strengthened property rights. Connected titling firms experienced fewer disputes than nonconnected titling firms after the program, and the results remain robust when using instrumental variable estimation.

Keywords: Judicial System Reform, Common Property Resource Development, Social Policy, Regulatory Regimes, Legislation, Legal Products, Legal Reform, Agricultural Economics, Cultural Heritage & Urban Revitalization, Foreign Trade Promotion and Regulation, Trade Law, De Facto Governments, Democratic Government, Public Sector Administrative & Civil Service Reform, Public Sector Administrative and Civil Service Reform

Suggested Citation

Miao, Meng and Tang, Dragon Yongjun and Xu, L. Colin, Property Rights, Political Connections, and Corporate Investment (August 12, 2019). World Bank Policy Research Working Paper No. 8973. Available at SSRN: https://ssrn.com/abstract=3436474

Meng Miao

Renmin University of China - Hanqing Institute ( email )

59 Zhongguancun Street
Beijing, 100872
China

Dragon Yongjun Tang (Contact Author)

The University of Hong Kong - Faculty of Business and Economics ( email )

KKL 1004
Pokfulam Road
Pokfulam
Hong Kong
(852)22194321 (Phone)

L. Colin Xu

World Bank

1818 H Street, NW
Washington, DC 20433
United States

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