Recent empirical evidence suggests that protection of property rights leads to higher investment levels and faster growth, according to the author. The paper endogenizes the emergence of property rights within a simple growth framework. Drawing on North (1990), a model is presented where economic performance and enforcement of property
rights may reinforce each other. Initial conditions determine the economy’s convergence to a high-income or a low-income steady state.
Link
http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2003/08/23/000094946_03081404010947/Rendered/PDF/multi0page.pdf