Property Rights and Economic Development*

Better access to information on land ownership will affect credit supply only if other impediments are absent, i.e., if agents have been credit constrained before and are endowed with sufficient levels of illiquid wealth that can be foreclosed upon at reasonable cost.

“better access to information on land ownership will affect credit supply only if other impediments are absent, i.e., if agents have been credit constrained before and are endowed with sufficient levels of illiquid wealth that can be foreclosed upon at reasonable cost (Besley and Ghatak 2010).”

Establishment and maintenance of a property rights system is a public good that affects economic outcomes through reduction of expropriation risk and facilitation of market transactions.

“Establishment and maintenance of a property rights system is a public good that affects economic outcomes through two main channels (Besley and Ghatak 2010). The first is the reduction of expropriation risk that will reduce the need to spend private resources on protecting property and increase investment incentives. The second is the facilitation of market transactions”