Financial Development, Property Rights, and Growth

Financial Development, Property Rights, and Growth

The authors analyze how property rights affect the allocation of firms' available resources among different types of assets. In particular, they investigate empirically for a large number of countries whether firms in environments with more se...

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Bibliographic Details
Main Authors: Claessens, Stijn, Laeven, Luc
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
ACCOUNTING PRACTICES
ACCOUNTING STANDARDS
ACCUMULATED DEPRECIATION
ASSETS
BANK LOANS
BANKING SYSTEM
BENCHMARK
BENCHMARK DATA
BENCHMARKS
BUREAUCRACY
BUSINESS ENVIRONMENT
CAPITALIZATION
COAL
COMPARATIVE ADVANTAGE
CONTRACT ENFORCEMENT
CORRUPTION
DEBT
DEVELOPED COUNTRIES
ECONOMIC GROWTH
ECONOMIC IMPACT
ECONOMIC PERFORMANCE
ECONOMICS LITERATURE
EMPIRICAL ANALYSIS
ENDOGENOUS VARIABLES
FINANCIAL DEVELOPMENT
FINANCIAL MARKETS
FINANCIAL SECTOR
FINANCIAL SYSTEMS
GDP
GROWTH POTENTIAL
GROWTH RATE
GROWTH RATES
HUMAN CAPITAL
INCOME
INSTITUTIONAL FRAMEWORK
INSTITUTIONAL VARIABLES
INTANGIBLE ASSETS
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY PROTECTION
INTELLECTUAL PROPERTY RIGHTS
INVENTIONS
LAND OWNERSHIP
LEGAL FRAMEWORK
LEGAL ORIGIN
LEGAL PROTECTION
LEGAL SYSTEMS
LIQUIDATION
NET VALUE
PATENT
PATENTS
PRIVATE PROPERTY
PROPERTY RIGHTS
RULE OF LAW
SECURE PROPERTY RIGHTS
SUBSIDIARIES
TRADEMARKS
TRANSITION ECONOMIES
VALUE ADDED
Online Access:http://documents.worldbank.org/curated/en/2002/11/2072637/financial-development-property-rights-growth
http://hdl.handle.net/10986/19201
Description
Summary:The authors analyze how property rights affect the allocation of firms' available resources among different types of assets. In particular, they investigate empirically for a large number of countries whether firms in environments with more secure property rights allocate available resources more toward intangible assets and consequentially grow faster. The authors find that improved asset allocation due to better property rights has an effect on growth in sectoral value added equal to improved access to financing arising from greater financial development. The results are robust, using various samples and specifications, including controlling for growth opportunities.

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