Threats to property rights: Effects on economic performance of the manufacturing sector in Indian states

Atsushi Kato and Takahiro Sato

Journal of Asian Economics, 2013, vol. 26, issue C, 65-81

Abstract: We examine the effects of the threats to property rights on the economic performance of the manufacturing sector in Indian states. We constructed indices of the threats using data on crime against property rights. In our analysis, we correct for the problem of underreporting of crimes in official crime data. The results of our instrumental variable estimation show that not only threats to private property but also to contracts adversely affect the performance of the manufacturing sector in India. We also extend our basic model to examine the effects of kidnapping and the scale economies of property rights protection.

Keywords: Property rights; Contract; Gross value added; TFP (search for similar items in EconPapers)
JEL-codes: K00 O43 P14 P17 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:26:y:2013:i:c:p:65-81

DOI: 10.1016/j.asieco.2013.02.005

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