THE IMPORTANCE OF PRIVATE PROPERTY RIGHTS FOR ECONOMIC GROWTH: THE CASE OF RURAL CHINA, 1979-1987

Author(s):  
IAN WILLS ◽  
XIAOKAI YANG
Author(s):  
Christina Scriven

A large literature on institutions has developed that claims that institutions influence long-run growth and development; thus, it becomes critical to carefully examine what institutions influence which outcomes to better understand factors that influence long-run economic growth across countries. Douglass North terms institutions as the rules of the game and this paper will work to further examine these rules by looking at private property rights institutions, which are the rules and regulation protecting citizens against the power of the government and elites , and contracting institutions, which are the rules and regulations governing contracts between ordinary citizens. The paper Unbundling Institutions , published in the Journal of Political Economy by Daron Acemoglu and Simon Johnson in 2005, seeks to conceptualize the different factors within the institutional framework and provide some semblance of which of these factors provide the most relevant analysis. The paper finds that property rights institutions have a strong influence on long-run economic growth, investment, and financial development, while contracting institutions have a more limited impact on those same factors. My presentation will give a concise background on the development of the new institutional approach and explain the reasoning for the conceptual divide between property rights and contracting institutions. Using a two-stage least squares regression (2SLS) approach and the instrumental variable approach, the presentation will address issues of causality and correlation. Identifying the link to the policy arena will provide context as to why this area is of particular importance.


2020 ◽  
pp. 119-138
Author(s):  
Kevin Vallier

The market economy can create trust for the right reasons. Markets and property rights promote social and political trust in the real world by creating social cohesion through exchange and generating economic growth. Markets also arise from private property rights, which are publicly justified based on the essential role private property rights play in protecting individual rights and the rights of associations. This includes private property rights in capital, that is, productive property, which means that a broadly market-based economy will be a central feature in any society that maintains high levels of social and political trust in the right ways.


2013 ◽  
Vol 63 (4) ◽  
pp. 493-510 ◽  
Author(s):  
Konstantin Yanovskiy ◽  
Sergey Shulgin

We tested the hypothesis of the political basis for economic rights and constructed our own variables of political regimes’ classification for the years 1820–2000. We found significant positive interdependencies between democracy indicators and economic growth. The protection of private property rights requires, first and foremost, due guarantees for personal immunity. Discretionary arrests and property seizures undermine any formal guarantees of private property, low taxation benefits, etc. Personal immunity should be defended even for “unpleasant” persons or for the possible political opponents of the country’s ruler.


Author(s):  
Vyacheslav Vovk

Russia is a resource-rich country, and great changes are being made today in order that land and its resources are used for the benefit of any citizen of our state. Under the circumstances government supervision (control) over the optimal use of territories gets the essential role. The rights that are contained in land reform give owners, landowners, land users, and employers extensive powers concerning independent land management.


2016 ◽  
Vol 1 (1) ◽  
pp. 85-97
Author(s):  
Moh. Ah. Subhan ZA

The main problem of social life in the community is about how to make the allocation and distribution of income well. Inequality and poverty basically arise not because of the difference of anyone’s strength and weakness in getting livelihood, but because of inappropriate distribution mechanism. With the result that wealth treasure just turns on the rich wealthy, which is in turn, results in the rich get richer and the poor get poorer.Therefore, a discussion on distribution becomes main focus of theory of Islamic economics. Moreover, the discussion of the distribution is not only related to economic issues, but also social and political aspects. On the other side, the economic vision of Islam gives priority to the guarantee of the fulfillment of a better life. Islam emphasizes distributive justice and encloses, in its system, a program for the redistribution of wealth and prosperity, so that each individual is guaranteed with a respectable and friendly standard of living. Islam recognizes private property rights, but the private property rights must be properly distributed. The personal property is used for self and family livelihood, for investment of the working capital, so that it can provide job opportunities for others, for help of the others through zakat, infaq, and shodaqoh. In this way, the wealth not only rotates on the rich, bringing on gap in social life.The problem of wealth distribution is closely related to the welfare of society. Therefore, the state has a duty to regulate the distribution of income in order that the distribution can be fair and reaches appropriate target. The state could at least attempt it by optimizing the role of BAZ (Badan Amil Zakat) and LAZ (Lembaga Amil Zakat) which has all this time been slack. If BAZ and LAZ can be optimized, author believes that inequality and poverty over time will vanish. This is because the majority of Indonesia's population is Muslim.


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