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The Relevance of Judicial Procedure for Economic Growth
It has been argued that procedural formalism undermines economic efficiency by fostering rent-seeking and corruption. We challenge this view by arguing that a number of judicial procedures foster economic growth by increasing the predictability of court decisions, which leads to more transactions...
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| Published in: | MAGKS - Joint Discussion Paper Series in Economics (Band 28-2008) |
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| Main Authors: | , |
| Format: | Work |
| Language: | English |
| Published: |
Philipps-Universität Marburg
2008
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| Subjects: | |
| Online Access: | PDF Full Text |
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| Summary: | It has been argued that procedural formalism undermines economic efficiency by
fostering rent-seeking and corruption. We challenge this view by arguing that a
number of judicial procedures foster economic growth by increasing the predictability
of court decisions, which leads to more transactions and higher investment
levels. We investigate the effects on economic growth of 15 judicial procedures.
Employing a standard growth model, we find in a cross-section of 67 countries
that timeliness, written—as opposed to oral—procedures, and the right to counsel
have a positive effect on growth, whereas the number of independent procedural
actions as well as the presumption of innocence have negative effects. Our results
partially contradict the results of former studies based on the Lex Mundi dataset. |
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| ISSN: | 1867-3678 |
| DOI: | 10.17192/es2023.0214 |