Law and Investment in Africa

Institutions and Economies, 8(2), pp. 91-120 (April, 2016).

38 Pages Posted: 9 Sep 2014 Last revised: 21 Apr 2016

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Date Written: November 8, 2011

Abstract

Contrary to mainstream consensus on the dominance of English common law countries in investment prospects, this paper sets a new tone in the legal origins debate by providing empirical validity on the dominance of French civil-law countries in private investment. The assessment is based on 38 African countries for the period 1996-2007. The law mechanisms of regulation quality and rule of law are used to investigate how legal origins (French, English, French sub-Saharan, Portuguese and North African) have influenced a plethora of investment dynamics (domestic, foreign, private and public). The dominance of French civil law countries in prospects for private investments could be traceable to their relatively low and stable inflation rates from common monetary policies.

Keywords: Law; Investment; Developing countries

JEL Classification: E22; G20; K20; K40; P50

Suggested Citation

Asongu, Simplice, Law and Investment in Africa (November 8, 2011). Institutions and Economies, 8(2), pp. 91-120 (April, 2016).. Available at SSRN: https://ssrn.com/abstract=2493155 or http://dx.doi.org/10.2139/ssrn.2493155

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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