Augment the Neoclassical Growth Model to Evaluate the Effect of Property Rights on Economic performance and Test It Using the Panel Data Approach

Mahdavi Adeli, Mohammad Hossein; Shahraki, Sara; Kalaei, Mohammad Reza

doi:10.22055/jqe.2010.10649

Augment the Neoclassical Growth Model to Evaluate the Effect of Property Rights on Economic performance and Test It Using the Panel Data Approach

https://doi.org/10.22055/jqe.2010.10649

Volume 7, Issue 2 - Serial Number 2
Summer 2010

Pages 1-26

Quarterly Journal of Quantitative Economics (JQE)

Authors

Mohammad Hossein Mahdavi Adeli

Sara Shahraki

Mohammad Reza Kalaei

Abstract

This study review the causal mechanisms linking institutional changes across countries to changes in the levels of economic performance. Mechanism considered in this study is the effects of property rights protection on physical and human capital accumulation and on economic performance, measured by the level of per capita GDP. For this purpose, this study has used Dincer (2007) approach. Dincer (2007) added variables related to institutional features of countries to neoclassical growth model proposed by Mankiw, Romer, and Weil (1992). It will test augmented model using data from 77 countries over the period 2000 to 2007. The results show that the augmented model increase the explanatory power. Also they revealed the accumulation of physical and human capital, and therefore the level of per capita GDP in a country, is positively related with the degree of property rights protection as well as with the saving rates.

Keywords

Economic Growth

property rights

Panel data

XML

PDF 208.31 K