Demographic structure and the security of property rights: The role of development and democracy
It is often argued that countries with a high population share of children and young workers should attract large capital inflows from aging industrialized economies. However, many of these countries deter foreign investors by a high risk of creeping or outright expropriation. In this paper we explore whether the correlation between countries' demographic structure and the perceived security of property rights reflects a causal relationship. We show that, in low-income countries, the ratio of young to old workers has a positive effect on the perceived security of property rights if the political system is sufficiently democratic. By contrast, this relationship cannot be observed in middle income countries.
Harms, P. und P. An de Meulen (2013), Demographic structure and the security of property rights: The role of development and democracy. European Journal of Political Economy, 29, 73-89