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