Polarization, Politics and Property Rights: Links Between Inequality and Growth

@article{Keefer1999PolarizationPA,
  title={Polarization, Politics and Property Rights: Links Between Inequality and Growth},
  author={Philip E. Keefer and Stephen F. Knack},
  journal={Public Choice},
  year={1999},
  volume={111},
  pages={127-154}
}
We argue that social polarization reduces the security ofproperty and contract rights and, through this channel,reduces growth. The first hypothesis is supported by cross-country evidence indicating that polarization in the form ofincome inequality, land inequality, and ethnic tensions isinversely related to a commonly-used index of the security ofcontractual and property rights. When the security of propertyrights is controlled for in cross-country growth regressions,the relationship between… Expand
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