Reforming Property Rights Institutions in Developing Countries: Can FDI Inflows Help?

摘要

In this paper, I analysed factors that can potentially facilitate property rights institutions reform in DC. Inspired by the works of North and Weingast (1989), Acemoglu et al. (2005a) and Acemoglu and Robinson (2008) that analysed the process of institutional reforms in England during the seventeenth century, I assume that nowadays DC could take advantage of FDI inflows to reform property rights institutions. I analysed FDI inflows as a source of exogenous shocks to the political equilibrium, which maintains ineffective property rights institutions in DC.