Is Democracy Property Rights Friendly
Ginger Silvera.
Overview
This paper examines 135 countries’ democracy, business freedom, urbanization, and gross domestic product to determine its affect on property rights. The hypotheses focus on whether democracy and business freedom affects democracy. The study uses an ordered logistic model to examine the relationship among factors to determine significance that contribute to the model. In addition, marginal effects and endogeneity tests are implemented due to the substance of the empirical justification and regression technique. Research indicates support for democracy, business freedom and gross domestic product. Cross-sectional and time series data are used to compare the variables from 1995-2005. The results of this study indicate democracy and business freedom affect property rights. However, property rights do not affect democracy when an instrumental variable is created to address endogeneity. Future research is recommended to use other measures for urbanization and its impact on property rights. In addition, governments could secure freedom in order for its citizens to sustain property rights.
