Gradstein, Mark2014-05-012014-05-012003-07https://hdl.handle.net/10986/18146Because protection of property rights cannot be appropriated by any individual, it is widely recognized as being the state's responsibility. Moreover, recent empirical evidence suggests that protection of property rights leads to higher investment levels and faster growth. The extent of property rights protection differs significantly across countries. The author integrates the emergence of property rights within a simple growth framework. Drawing on North (1990), he presents a model where economic performance and enforcement of property rights may reinforce each other. Initial conditions determine the economy's convergence to a high-income or a low-income steady state. Existing empirical evidence offers tentative support for this theory.en-USCC BY 3.0 IGOAGGREGATE INCOMEAGRICULTUREAPPROPRIATIONBUREAUCRATIC CORRUPTIONBUREAUCRATIC EFFICIENCYCAPACITY BUILDINGCAPITAL ACCUMULATIONCAPITAL MARKETCOLLECTIVE ACTIONCONDITIONALITYCORRUPT COUNTRIESCORRUPTIONCROSS- COUNTRY DIFFERENCESCROSS-COUNTRY ANALYSESCROSS-COUNTRY ANALYSISDEVELOPMENT ECONOMICSDIFFERENCES IN INCOMEDIMINISHING RETURNSDIMINISHING RETURNS TO SCALEDYNAMIC SETTINGECONOMIC CONSEQUENCESECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC HISTORYECONOMIC PERFORMANCEECONOMIC REVIEWEMPIRICAL EVIDENCEEMPIRICAL FINDINGSEMPIRICAL STUDIESEMPIRICAL SUPPORTENDOGENOUS DETERMINATIONENFORCEABILITYEQUILIBRIUMFINANCIAL ASSETSFINANCIAL SECTORGOOD GOVERNANCEGOVERNANCE INDICATORSGOVERNANCE QUALITYGOVERNANCE REFORMSGROSS INCOMEGROWTH MODELGROWTH RATEGROWTH RATESHOUSEHOLD INCOMEHUMAN CAPITALIMPORTSINCOMEINCOME LEVELINCOME SHOCKSINSTITUTIONAL CHANGEINSTITUTIONAL MEASURESINTERNATIONAL TRADELABOR MARKETLABOR MARKET POLICIESLINEAR REGRESSIONSLOW INCOMEMARKET ECONOMIESMARKET ECONOMYMULTIPLE EQUILIBRIANEGATIVE IMPACTOILPER CAPITA INCOMESPOLICE FORCEPOLICY IMPLICATIONSPOLICY RESEARCHPOLITICAL ECONOMYPOLITICAL INSTABILITYPOOR COUNTRIESPOOR COUNTRYPOSITIVE EFFECTSPOVERTY ANALYSISPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGIESPRODUCTIVE ACTIVITYPRODUCTIVITYPROPERTY RIGHTSPUBLIC ECONOMICSPUBLIC GOODPUBLIC GOODSRENT SEEKINGRULE OF LAWSECURE PROPERTY RIGHTSSOCIAL CAPITALSTATISTICAL ANALYSISSUBJECTIVE EVALUATIONSTAX EVASIONTRANSITION ECONOMIESUNEMPLOYMENT GOVERNANCEECONOMIC GROWTHRENT-SEEKING BEHAVIORPROPERTY RIGHTSGOVERNMENT ROLEINVESTMENT ENVIRONMENTENFORCEMENT POWERSLAW ENFORCEMENTUNEMPLOYMENTGOVERNANCE10.1596/1813-9450-3098