Effect of Threats to Property Rights on Economic Performance of the Manufacturing Sector of Indian States


We examine the effect of threats to property rights on the economic performance of the manufacturing sector of Indian states. We construct indices of the threats from data on crime against property rights. Our estimation results show that not only threats to private property, but also threats to contracts adversely affect the performance of India's manufacturing sector.

Keywords: Property right, Contract, Gross value added, Capital labor ratio, TFP

JEL Classification: K00; O43; P14; P17;

Atsushi KATO
School of Business, Aoyama Gakuin University

Takahiro SATO
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: (81) 78 803 7036
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