Carolina Torres Graça
Doctorate – Business Strategy And The Land Property Rights In Brazil
Advisor: Prof. Dr. Décio Zylbersztajn
Comission: Profs. Drs. Bastiaan Philip Reydon, Cláudio Antônio P. Machado Filho e Rachel Sztajn
Class: 215, FEA-5
How does the quality of institutions influence the strategic choice for the protection of land property rights in Brazil? In most countries, the state is the steward of the property right over land because it enjoys advantages in the exercise of the activity and provides gains for society. However, institutional fragilities reduce the effectiveness of legal protection, leading to attempts to capture imperfectly protected rights, and promoting the adoption of protective measures on the part of their holders, thus creating a favorable scenario for disputes. Given the existence of vulnerabilities in the definition and protection of land rights in Brazil, this study analyzes the relationship between the institutional environment and the use of private arrangements to meet the needs of right holders. It is divided into four parts. The first one presents the evolution of the theory on Economic Analysis of Property Rights and how it was incorporated in the literature of strategic analysis. It discusses from a theoretical perspective the consequences of there being deficiencies in the protection of property rights by the State. The second part shows how land property rights in Brazil were formed and the institutional environment both at national and international levels. Next, it characterizes the plantation forests sector and disputes over land associated with it. The fourth part discusses private strategies to address the vulnerability of the state in protecting rights. It is composed of a theoretical model and three case studies. The theoretical model addresses the quality of institutions, the use of multiple protection mechanisms, the transaction cost for protection of attributes allocated in public domain and the importance of private mechanisms for the protection of property rights. The last part presents the results. The empirical study concludes that the quality of the institutions (i) supports the strategic choice and the organizational adaptation for the protection of property rights; (ii) determines the transaction cost of protecting property rights through formal mechanisms; and, especially, (iii) determines the importance of private mechanisms for the protection of land property rights.
*Abstract provided by the author