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Economic development, legality, and the transplant effect

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  • Berkowitz, Daniel
  • Pistor, Katharina
  • Richard, Jean-Francois

Abstract

We analyze the determinants of effective legal institutions (legality) using data from forty-nine countries. We show that the way the law was initially transplanted and received is a more important determinant than the supply of law from a particular legal family. Countries that have developed legal orders internally, adapted the transplanted law, and/or had a population that was already familiar with basic principles of the transplanted law have more effective legality than countries that received foreign law without any similar pre-dispositions. The transplanting process has a strong indirect effect on economic development via its impact on legality, while the impact of particular legal families is weaker and not robust to alternative legality measures.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 47 (2003)
Issue (Month): 1 (February)
Pages: 165-195

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Handle: RePEc:eee:eecrev:v:47:y:2003:i:1:p:165-195

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