Inequality, Property Rights Protection, and Economic Growth in Transition Economies: Theory and Russian Evidence

Konstantin Sonin

No 2300, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: For economies in transition, the issues of property rights protection provided by the state and implications for economic performance are very important. The paper develops an endogenous growth theory model with incomplete capital markets and the level of public protection of property rights determined by voting (possibly different from the majority voting) and verifies the implications using cross-section data on Russian regions. During transition (since 1992), Russian regions demonstrated enormous differences in growth rates. It is found that these differences may be explained by initial conditions and effectiveness of institutions. Also, positive impact of inequality on the level of public protection of property rights is found and a theoretical explanation for this phenomenon in the framework of the model is provided.

Keywords: Economic Growth; Political Economy; Property Rights; Transition Economics (search for similar items in EconPapers)
JEL-codes: D72 H40 O40 (search for similar items in EconPapers)
Date: 1999-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2300 (application/pdf)

Related works:
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:cpr:ceprdp:2300

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=2300

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().