A widely cited paper claims that countries with stronger property rights experience higher long-run economic growth. The correlation is real and well documented. But economist Kofi Owusu warns that the direction of causation is not clear: growing economies may be the ones that develop strong property institutions, rather than vice versa.
Which choice best describes the function of the third sentence in the text?
- Acheck_circle
It accepts the correlation but raises a reverse-causation concern that complicates the causal interpretation.
- B
It defines the term 'property rights'.
- C
It restates the second sentence.
- D
It rejects the existence of the correlation.
Explanation
Owusu accepts the correlation while flagging reverse causation. B captures this qualifying move.