Does Law Matter? An Introduction

Abstract

This contribution addresses the importance of institutions for economic development and in particular the role of law for economic growth. It was written as the introduction to an edited volume that critically considers the so-called legal origins-thesis. This thesis claims that the economic performance of a country is largely the result of that country’s legal system and in particular of how this legal system has come about. Economic indicators would show that in particular common law countries are better suited to meet the interests of business than civil law countries. This volume takes stock of the debate by offering a mufti-disciplinary approach to the relationship between legal rules and economic growth. It contains a general part with theoretical, empirical, historical and economic analysis of the legal origins-claim, a part on differences among various jurisdictions (including China) and a part on specific fields of law (including discussion of corporate law, property law and environmental law).

Keywords: Legal origins, economic growth, comparative law, economic analysis, China

JEL Classification: D63, F10, K00, P51