Factors influencing Growth and Development – Absence of Property Rights

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes

What are Property Rights?

Property rights refer to the legal framework that governs the ownership, use, and transfer of assets such as land, natural resources, and intellectual property.

The absence of property rights can have a detrimental impact on economic growth and development.

Strong property rights are essential for a functioning market economy and economic growth

What are the impacts of an Absence of Property Rights

1. Reduced Economic Growth

Lack of incentives for investment can lead to underutilization of resources and reduced economic growth

2. Market Failure

Inefficient allocation of resources can lead to market failure and reduced economic efficiency

3. Corruption

Corruption can lead to rent-seeking behaviour and reduced economic growth

4. Violent Conflicts

Political instability can lead to violent conflicts and undermine the overall stability and security of a country

5. Less Investment

Reduced innovation can lead to limited investments in R&D and reduced technological innovation

Quick Fire Questions – Knowledge Check

1. Explain what Property Rights are (4 marks)

2. Identify and explain five impacts that an Absence of Property Rights may cause (10 marks)

Next Revision Topics

• Factors influencing Growth and Development
• Factors influencing Growth and Development on Education / Skills
• Strategies influencing Growth and Development
• Measures of Development
• Poverty
• Inequality

A Level Economics Past Papers

• AQA
• Edexcel
• OCR
• WJEC