Legal Institutions and Firm Performance in Brazil

Mueller, B., N. Campos and M. Iootty. 2013. “Legal Institutions and Firm Performance,” Economic Analysis of Law Review, Vol. 3, (1).

21 Pages Posted: 27 Dec 2017

See all articles by Bernardo Mueller

Bernardo Mueller

Universidade de Brasilia

Nauro F. Campos

Brunel University London - Economics and Finance; Centre for Economic Policy Research (CEPR); University of Michigan at Ann Arbor - The William Davidson Institute; IZA Institute of Labor Economics

Mariana Iootty

World Bank

Date Written: June 20, 2013

Abstract

This paper analyses the specific mechanisms through which legal institutions and the Rule of Law affect firm performance using survey evidence from a sample of about 100 Brazilian firms in the textile and electronics industries. The data provide firms’ perceptions of whether judicial institutions are just, impartial, corruptible, swift, accessible, consistent and effective, which allowed to create an index of firms’ perception of legal institutions. It is analyzed how these perceptions vary across firms with different characteristics, such as large/small employer, foreign/domestic-owned, exporter/non-exporters and revenues level. The results suggest that firms that had a better perception of the Judiciary increased levels of employment and had better economic performance.

Keywords: Legal Institutions; Predictability; Public Policy; Contract; Judiciary; Brazil

JEL Classification: O12, D23, K20, O17, K30

Suggested Citation

Mueller, Bernardo and Campos, Nauro F. and Iootty, Mariana, Legal Institutions and Firm Performance in Brazil (June 20, 2013). Mueller, B., N. Campos and M. Iootty. 2013. “Legal Institutions and Firm Performance,” Economic Analysis of Law Review, Vol. 3, (1). . Available at SSRN: https://ssrn.com/abstract=3091306

Bernardo Mueller (Contact Author)

Universidade de Brasilia ( email )

Dept. de Economia
Universidade de Brasilia
Brasilia, DF 70910-900
Brazil
55 61 981110349 (Phone)
55 61 3349-1303 (Fax)

HOME PAGE: http://bpmmueller.wixsite.com/bernardo-mueller

Nauro F. Campos

Brunel University London - Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

University of Michigan at Ann Arbor - The William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Mariana Iootty

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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