Property Rights and Corruption

Kemal, M Ali (2007): Property Rights and Corruption.

Abstract

Property rights are the core of economic development. Property rights are essential for the people to believe in the market system. The paper discusses importance of property rights, problems in the property rights in Pakistan, possibility of designing property rights in Pakistan and its impact on corruption. The study concludes that there are lots of anomalies in the current property rights law which needs to be abolished such as benami transaction and general power of attorney. The study prefers Parcel (Torrens) based system because it is generally known to the people and the rules will be formed by taking informal constraints into consideration. Titling and registration of property rights in a formal way, coherent with informal constraints, would definitely increase corruption in the short, i.e., in the period of transition. But in the long run when the system is setup we can hope that the extent of corruption will decrease.

• Item Type: MPRA Paper
• Language: English
• Keywords: Corruption, Property Rights, Enforcement
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B52 - Institutional ; Evolutionary; K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K42 - Illegal Behavior and the Enforcement of Law; P - Economic Systems > P1 - Capitalist Systems > P14 - Property Rights

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