Property rights confer legal control or ownership of a good. For markets to operate efficiently, property rights must be clearly defined and protected - perhaps through government legislation and regulation.

Property rights are often considered vital for sustained economic growth and development:

Why are property rights important for development?

1. Rights to own land and to establish businesses are seen as crucial for wealth creation e.g. private plots to farm.
2. Protection of property rights is a major barrier to corruption within government.
3. Community ownership / husbandry of natural resources can help overcome threats to eco-systems.
4. Laws on patents are important to secure investment in research industries.
5. Common rules encourage trade & investment between countries by reducing trade friction costs.