Law, Economic Growth and Human Development: Evidence from Africa
African Governance and Development Institute WP/11/010
20 Pages Posted: 9 Sep 2014
Date Written: October 8, 2011
This paper cuts adrift the mainstream approach to the legal-origins debate on the law-growth nexus by integrating both overall economic and human components in our understanding of how regulation quality and the rule of law lie at the heart of economic and inequality adjusted human developments. Findings summarily reveal that legal-origin does not explain economic growth and human development beyond the mechanisms of law. Our results support the current consensus that, English common-law countries provide for better legal systems that improve conditions for economic growth and human development than French civil-law countries. Portuguese civil-law countries lie between the French-speaking and North African countries, while French sub-Saharan Africa is slightly below the average of Francophone Africa. As a policy implication, results support the benefits of the rule of law and quality of regulation as channels to economic growth and human development.
Keywords: Law; economic growth; human development; Africa
JEL Classification: I00; K20; K40; O55; P50
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