Legal Institutions and Economic Development
CentER Discussion Paper Series No. 2010-94
72 Pages Posted: 1 Sep 2010
Date Written: August 31, 2010
Legal institutions are critical for the development of market-based economies. This paper defines legal institutions and discusses different indicators to measure their quality and efficiency. It surveys a large historical and empirical literature showing the importance of legal institutions in explaining cross-country variation in economic development. Finally, it presents and discusses three different views of why we can observe the large cross-country variation in legal institutions, the social conflict, the legal origin and the culture and religion hypotheses.
Keywords: Legal institutions, economic development, legal system indicators, property rights
JEL Classification: K1, K4, O16, O43, P14
Suggested Citation: Suggested Citation