Property Rights and Economic Growth in OAPI Countries: Case of WAEMU Countries


  • Germain Kouakou Kramo University Félix Houphouët-Boigny/Ivorian Economic and Social Research Centre (CIRES)


Property Rights, Economic Growth, Pool Mean Group, Panel Threshold Regression


The objective of this paper is to analyse the relationship between property rights protection and economic growth in WAEMU countries. Using panel data on seven (7) WAEMU countries from 1995 to 2013, we apply the Pool Mean Group approach to a linear model and we found that, in the long term, property rights influence positively the economic growth in WAEMU countries. But this relation is negative in the short-term. We apply the endogenous threshold estimation technique of Hansen (2000) that focuses on the search for a critical level of property rights.Results provide strong evidence for the existence of such a threshold.Below this threshold the influence of property rights on the economic growth is negative or statistically not significant. But beyond this threshold, this effect is positive and statistically significant.


. Chan, K. S. (1993), “Consistency and limiting distribution of the least square estimator of a threshold autoregressive modelâ€, The annals of statistics, Vol.21, pp. 520-533.

. Chen, Y. et T. Puttitanun (2005), “Intellectual property rights and innovation in developping countriesâ€, Journal of Development Economics Vol.78, pp. 474–493.

. Chong, A. and C. Calderón (2000), “Causality and feedback between institutional measures and economic growthâ€, Economics and Politics 12(1): 69–81.

. De Soto, H. (2000), The mystery of capital: why capitalism triumphs in the west and fails everywhere else, New York, NY: Basic Books.

. De Soto, H. (1990),The other path: the invisible revolution in the third world, New York, NY: Basic Books.

. Dincer, C. O. (2007),“The effect of property rights on economic performanceâ€, Applied Economics, 2007, 39, 825–837.

. Falvey, R., N. Foster and D. Greenaway (2006), “Intellectual property rights and economic growthâ€, Review of Development Economics 10:4, 700–719.

. Ginarte, J. C. and W. G. Park (1997), “Determinants of patents rights: A cross-national studyâ€, Research Policy, 26, pp.283-301.

. Glass, A. J. (2010), “Imitation as a Stepping Stone to Innovationâ€, Working paper, Department of Economics Ohio State. University./ (accessed February 12, 2010).

. Gould, D. M. and W. C. Gruben, (1996), “The Role of Intellectual Property Rights in Economic Growth,†Journal of Development Economics 48, 323-350.

. Hall, R. E. and C. I. Jones (1999),“Why do some countries produce so much more output per worker than others?â€,The Quarterly Journal of Economics 114: 83-116.

. Hansen, B. E. (2000), “Sample splitting and threshold estimation,†Econometrica, Vol. 68, N°3, pp. 575-603.

. Hansen, B. E. (1999), “Threshold effects in non-dynamic panels: Estimation, testing and inference,†Journal of Econometrics, Vol. 93, pp. 345–368.

. Hoeffler, A. E. (2002), “The augmented Solow model and the African growth debate.†Oxford Bulletin of Economics and Statistics, 2002: 135-158.

. Im, K. S., M. Pesaranet Y. Shin (2003), “Testing for unit root in heterogeneous panelsâ€, Journal of Econometrics, vol. 115, pp.53-74.

. Jakobsen, Jo and I. De Soysa (2006), “Do foreign investors punish democracy? Theory and empirics, 1948-2001â€, Kyklos, Vol. 59, No. 3.

. Janjua, Z. P. and G. Samad (2007), “Intellectual property rights and economic growth: the case of middle income developing countriesâ€, The Pakistan Development Review 46: 4 Part II pp. 711–722.

. Kao, C., M. H (1999), “Spurious regression and residual-based tests for cointegration in panel dataâ€, Journal of Econometrics,Vol. 90, pp. 1-44.

. Knack, S. and P. Keefer (1995), “Institutions and economic performance: Cross-country tests using alternative institutional measuresâ€, Economics andPolitics, Vol. 7 pp 207-27.

. Kim, Y. K., K. Lee et W. G. Park (2012), “Appropriate intellectual property protection and economic growth in countries at different levels of developmentâ€, Research Policy, Vol. 41, Issue 2, pp. 358-375.

. Kwan, Y. K. et E. L.-C Lai (2003), “Intellectual Property Rights Protection and Endogenous Economic Growthâ€, Journal of Economic Dynamics and Control, Vol. 27, pp. 853-873.

. Lewer, J. and M. Saenz (2005), “Property right and growth: panel data evidenceâ€, South-western economic review, 32(1), pp: 157-165.

. Li, Q. and A. Resnick (2003), “Reversal of fortunes: democratic institutions and foreign direct investment inflows to developing countriesâ€, International Organization, Vol. 57, No. 1.

. Mankiw, N. G., D. Romer and D. N. Weil (1992), “A Contribution to the Empirics of Economic Growthâ€, The Quarterly Journal of Economics, Vol. 107, No. 2, pp. 407-437.

. Mohtadi, H. and S. Ruediger (2014), “Intellectual Property Rights and Growth:Is there a Threshold Effect?â€,International Economic Journal, v.28, no.1, p.121-135.

. North, D. (1990), Institutions, institutional change, and economic performance, New York: Cambridge University press.

. Pedroni, P. (1999), “Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors†Oxford Bulletin of Economics and Statistics, Vol.61, pp. 653-670.

. Pedroni, P. (1996), Fully modified OLS for heterogeneous cointegrated panels and the case of purchasing power parity, Working paper N°96–020, Department of Economics, IndianaUniversity.

. Pesaran, M. H., and Shin, Y. (1999), An autoregressive distributed-lag modelling approach to cointegration analysis, In: Strom, S. (Ed.), Econometrics and Economic Theory in the20th Century. Cambridge University Press, Cambridge.

. Pierpont, B. (2007), “Democracy, property rights and FDI in developing countries: a regional analysisâ€, Macalester college economics department.

. Sattar, A. and T. Mahmood (2011), “Intellectual property rights and economic growth: evidences from high, middle and low income countriesâ€, Pakistan economic and social review volume 49, no. 2 (winter 2011), pp. 163-186.

. Solow, R. (1956), “A Contribution to the Theory of Economic Growthâ€, Quarterly Journal of Economics, 70, 65-94.

. Thompson, M. A., and F. W. Rushing (1999), “An Empirical Analysis of the Impact of Patent Protection on Economic Growth: An Extension’, Journal of Economic Development 24, no. 1: 67-76.




How to Cite

Kramo, G. K. (2015). Property Rights and Economic Growth in OAPI Countries: Case of WAEMU Countries. Asian Journal of Humanities and Social Studies, 3(6). Retrieved from