scholarly journals Property Rights, Deregulation, and Entrepreneurial Development in a Transition Economy

2017 ◽  
Vol 14 (1) ◽  
pp. 73-103 ◽  
Author(s):  
Wubiao Zhou
Keyword(s):  
Property Rights ◽  
Transition Economy ◽  
Market Transition ◽  
Formal Property ◽  
Multiple Model ◽  
Deregulated Markets ◽  
Positive Effects ◽  
Variable Approach ◽  
Long Run ◽  
Entrepreneurial Development

ABSTRACTThis article investigates the relative roles of formal property rights institutions versus deregulated markets in entrepreneurial development, based on China's market transition. Empirically, it is not yet known which set of institutions matters more for entrepreneurship, particularly in the long run, despite the existence of well-established theoretical arguments for each. Using provincial-level panel data from China's transition economy, this study has the following findings: On average, both formal protection of property rights and deregulated markets have positive effects on entrepreneurial development; yet, as market transition progresses, the effect of formal protection of property rights increases, while that of deregulated markets decreases. These results are robust to both multiple model specifications and an endogeneity test using an instrumental variable approach. Overall, therefore, while both sets of institutions indeed play positive roles in entrepreneurial development, property rights institutions may be more fundamental in the long run.

Unbundling Institutions: Using Economic Analysis to Understand the Importance of Institutions

2017 ◽  
Author(s):  
Christina Scriven
Keyword(s):  
Economic Growth ◽  
Property Rights ◽  
Private Property ◽  
Least Squares Regression ◽  
Private Property Rights ◽  
Variable Approach ◽  
Long Run ◽  
The Government ◽  
Douglass North ◽  
Policy Arena

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.

scholarly journals Effects of patents on the transition from stagnation to growth

2019 ◽  
Vol 33 (2) ◽  
pp. 395-411 ◽  
Author(s):  
Angus C. Chu ◽  
Zonglai Kou ◽  
Xilin Wang
Keyword(s):  
Economic Growth ◽  
Intellectual Property ◽  
Property Rights ◽  
Population Size ◽  
Intellectual Property Rights ◽  
Growth Model ◽  
Patent Protection ◽  
Theoretic Analysis ◽  
Schumpeterian Growth ◽  
Long Run

Abstract This study provides a growth-theoretic analysis of the effects of intellectual property rights on the take-off of an economy from an era of stagnation to a state of sustained economic growth. We incorporate patent protection into a Schumpeterian growth model in which take-off occurs when the population size crosses an endogenous threshold. We find that strengthening patent protection has contrasting effects on economic growth at different stages of development. Specifically, it leads to an earlier take-off but also reduces economic growth in the long run.

Finding the “Democratic Advantage” in Sovereign Bond Ratings: The Importance of Strong Courts, Property Rights Protection, and the Rule of Law

2012 ◽  
Vol 66 (3) ◽  
pp. 515-535 ◽  
Author(s):  
Glen Biglaiser ◽  
Joseph L. Staats
Keyword(s):  
Property Rights ◽  
Rule Of Law ◽  
Credit Rating ◽  
Bond Ratings ◽  
The Rule Of Law ◽  
Rating Agencies ◽  
Sovereign Bond ◽  
Positive Effects ◽  
Property Rights Protection ◽  
Democratic Advantage

AbstractMuch scholarship in the political economy literature has investigated the influence of the democratic advantage on sovereign bond ratings by credit rating agencies (CRAs). Missing from earlier work, however, is inquiry into the effects on bond ratings of factors that lower political risk, such as adherence to the rule of law, the presence of a strong and independent judicial system, and protection of property rights. Using panel data for up to thirty-six developing countries from 1996 to 2006, we find that rule of law, strong and independent courts, and protection of property rights have significant positive effects on bond ratings. Policymakers wanting to obtain higher bond ratings and increased revenue from bond sales would do well to heed the message contained in these findings.

scholarly journals Will Intellectual Property Rights Policy Increase Foreign Direct Investment and Promote Technological Innovation?

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Debao Hu ◽  
Zhengkai Liu ◽  
Jing Zhao
Keyword(s):  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Common Knowledge ◽  
Business Environment ◽  
Theory Model ◽  
Long Run ◽  
Resource Endowment ◽  
Indigenous Innovation ◽  
Good For

In this paper, we discuss the effects of intellectual property rights (IPRs) on FDI and indigenous innovation and the overall effects of IPR on the Southern and Northern countries. Our model predicts that tighter IPR is good for FDI and indigenous innovation; however, the effects vary according to the initial resource endowment such as skill level and absorptive capacity. By a game theory model, we also find that tighter IPR benefits both sides if the innovation is the common knowledge to both players, and it improves indigenous innovation and welfare in a short term, but they will emerge in the long run. We also discuss the further direction to an empirical study. Finally, we make the following conclusion: IPR is part of business environment, and tighter IPR in progress is good for boosting welfare of both sides. It is time to build a better environment for IPR, but the cost of patent enforcement policy and the trade barrier must be taken into account.

scholarly journals Are Soybean Yields Getting a Free Ride From Climate Change? Evidence From Argentine Time Series

2018 ◽  
Author(s):  
Hildegart Ahumada ◽  
Magdalena Cornejo
Keyword(s):  
Climate Change ◽  
Time Series ◽  
Extreme Rainfall ◽  
Co2 Concentration ◽  
Interesting Case ◽  
Extreme Rainfall Events ◽  
Beneficial Effects ◽  
Positive Effects ◽  
Long Run ◽  
Equilibrium Correction

Soybean yields are often indicated as an interesting case of climate change mitigation due to the beneficial effects of CO2 fertilization. In this paper we econometrically study this effect using a time series model of yields in a multivariate framework for a main producer and exporter of this commodity, Argentina. We have to deal with the upward behavior of soybean yields trying to identify which variables are the long-run determinants responsible of its observed trend. With this aim we adopt a partial system approach to estimate subsets of long-run relationships due to climate, technological and economic factors. Using an automatic selection algorithm we evaluate encompassing of the different obtained equilibrium correction models. We found that only technological innovations due to new crop practices and the use of modified seeds explain soybean yield in the long run. Regarding short run determinants we found positive effects associated with the use of standard fertilizers and also from changes in atmospheric CO2 concentration which would suggest a mitigation effect from global warming. However, we also found negative climate effects from periods of droughts associated with La Niña episodes, high temperatures and extreme rainfall events during the growing season of the plant.

scholarly journals Short-term and long-term international scientific mobility of Italian PhDs: An analysis by gender

2021 ◽  
pp. 35-40
Author(s):  
Valentina Tocchioni ◽  
Alessandra Petrucci ◽  
Alessandra Minello
Keyword(s):  
Multinomial Logistic Regression ◽  
Early Career ◽  
International Mobility ◽  
Short Term ◽  
Host Countries ◽  
Academic Mobility ◽  
Positive Effects ◽  
Long Run ◽  
The Brain

In the last years, there has been a large increase in high-educated and high-skilled people’s mobility as a consequence of the internationalization and globalization, the weakening of research and university systems of sending countries (the “brain drain” process), the increase in skilled demand and improvements in higher education of host countries (the “brain gain” process). At the micro-level, academic mobility has positive consequences on occupational prospects and careers of researchers, both in the short- and long- run. Nevertheless, numerous research studies have demonstrated the challenges of engaging in international academic mobility for people with caring responsibilities, particularly women. Using Italian data on occupational conditions of PhDs collected in 2018 by Istat and modelling multinomial logistic regression analyses, we intend to verify if female researchers are associated with a lower international mobility irrespective their field of study, and the extent to which gender interacts differently in the various fields of study in affecting the probability of moving abroad after PhD qualification. Also, the distinction between long-term and short-term mobility, which has been mainly neglected in the literature concentrating on longer stays, has taken into account. In this respect, short-term mobility is a potentially high-value investment that may be pursued also by those researchers and scientists who cannot move for longer periods, such as women with caring responsibilities. In the literature, it is acknowledged that an experience abroad during early career may have positive effects on future occupational prospects. With our work, we intend to shed light on potential disparities on moving abroad that may exist among researchers in their early career by gender, and which could contribute to leave behind women in academia.

scholarly journals A Long Run ARDL Investigation of Manufacturing Adjustment to the Services Economy in Nigeria

2021 ◽  
Vol 9 (3) ◽  
pp. 95-107
Author(s):  
Olumuyiwa Olamade
Keyword(s):  
Capital Accumulation ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
Business Services ◽  
Development Indicators ◽  
Services Sector ◽  
Positive Effects ◽  
Distributed Lag ◽  
Long Run

The long-run equilibrating relationship between the value-added growth of services and manufacturing is investigated in this research. The study is based on the well-established empirical link between manufacturing and service activities, and in particular, manufacturing's servicification. The selected variables' annualized time series were obtained from the World Development Indicators. The paper used the autoregressive distributed lag framework to regress manufacturing value-added growth against service value-added growth while accounting for economic growth, factor input growth, and trade effects. The findings revealed that in Nigeria, a strong performing services sector has a large negative impact on manufacturing performance, whereas capital accumulation and income growth have positive effects. The supply constraint of business services that the manufacturing sector requires is at the root of this finding. The paper advocates for policy frameworks that support the efficient supply of business services as both a manufacturing input and a productivity enhancer for the entire economy.

scholarly journals Effects of Exchange Rate and Inflation Rate on Stock Market Returns Volatility in India.

2020 ◽  
Author(s):  
Nenavath Sre ◽  
Suresh Naik
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Error Correction ◽  
Inflation Rate ◽  
Market Returns ◽  
Stock Market Returns ◽  
Positive Effects ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

Abstract The paper investigates the effect of exchange and inflation rate on stock market returns in India. The study uses monthly, quarterly and annual inflation and exchange rate data obtained from the RBI and market returns computed from the Indian share market index from January, 2000 to June, 2020.The paper uses the autoregressive distributed lag (ARDL) co-integration technique and the error correction parametization of the ARDL model for investigating the effect on Indian Stock markets. The GARCH and its corresponding Error Correction Model (ECM) were used to explore the long- and short-run relationship between the India Stock market returns, inflation, and exchange rate. The paper shows that there exists a long term relationship but there is no short-run relationship between Indian market returns and inflation. But, there is periodicity of inflation monthly considerable long run and short-run relationship between them existed. The outcome also illustrates a significant short-run relationship between NSE market returns and exchange rate. The variables were tested for short run and it was significantly shown the positive effects on the stock market returns and making it a desirable attribute of which investors can take advantage of. This is due to the establishment of long-run effect of inflation and exchange rate on stock market returns.

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