EconPapers    
Economics at your fingertips  
 

Property Rights and Finance

Simon Johnson, John McMillan and Christopher Woodruff ()

American Economic Review, 2002, vol. 92, issue 5, 1335-1356

Abstract: Which is the tighter constraint on private sector investment: weak property rights or limited access to external finance? From a survey of new firms in post-communist countries, we find that weak property rights discourage firms from reinvesting their profits, even when bank loans are available. Where property rights are relatively strong, firms reinvest their profits; where they are relatively weak, entrepreneurs do not want to invest from retained earnings.

Date: 2002
Note: DOI: 10.1257/000282802762024539
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (281) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/000282802762024539 (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Property Rights and Finance (2002) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:92:y:2002:i:5:p:1335-1356

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2020-04-06
Handle: RePEc:aea:aecrev:v:92:y:2002:i:5:p:1335-1356