Decoding the Code of Civil Procedure: Do Judiciaries Matter for Growth?

Matthieu Chemin

University of Quebec at Montreal (UQAM)

September 2007

CIRPEE Working Paper No. 07-26

This paper attempts to measure the causal impact of the speed of judiciaries on economic activity by using two novel instrumental variables measuring judicial procedural ambiguity and complexity. Firs, I find that temporally exogenous conflicting judicial decisions taken in India due to the Code of Civil Procedure's ambiguity lead to higher expected trial duration as judges are required to spend considerable time in choosing between several conflicting views. Second, I find that Indian High Court amendments complicating procedures to treat a case are related to higher trial duration. By using spatial and temporal variations in the occurrence of conflicting decisions and enactment of amendments as instrumental variables, I am able to measure the impact of judicial speed on credit markets, agricultural development and manufacturing performance.

Number of Pages in PDF File: 54

Keywords: Law and economics, Institutions, Courts, Economic Growth, Industrial Performance

JEL Classification: K10, K12, K40, K42, O12, O17, L14, D23, C72

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Date posted: October 3, 2007  

Suggested Citation

Chemin, Matthieu, Decoding the Code of Civil Procedure: Do Judiciaries Matter for Growth? (September 2007). CIRPEE Working Paper No. 07-26. Available at SSRN: https://ssrn.com/abstract=1018898 or http://dx.doi.org/10.2139/ssrn.1018898

Contact Information

Matthieu Chemin (Contact Author)
University of Quebec at Montreal (UQAM) ( email )
PB 8888 Station DownTown
Succursale Centre Ville
Montreal, Quebec H3C3P8
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