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The impact of the judiciary on entrepreneurship: Evaluation of Pakistan's "Access to Justice Programme"

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  • Chemin, Matthieu

Abstract

In 2002, the Pakistani government implemented a judicial reform that cost $350Â million or 0.1% of Pakistan's 2002 GDP. This reform did not involve increased incentives for judges to improve efficiency but merely provided them with more training. Nonetheless, the reform had dramatic effects on judicial efficiency and consequently on entrepreneurship: judges disposed of a quarter more cases and entry rate of new firms increased by half due to the reform. Using data from the World Bank Group Entrepreneurship Database, our estimates suggest that this translates into an increase of Pakistan's GDP by 0.5%.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 93 (2009)
Issue (Month): 1-2 (February)
Pages: 114-125

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Handle: RePEc:eee:pubeco:v:93:y:2009:i:1-2:p:114-125

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Web page: http://www.elsevier.com/locate/inca/505578

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Keywords: Legal system Entrepreneurship;

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  1. Simon Johnson & Daniel Kaufman & Andrei Shleifer, 1997. "The Unofficial Economy in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 159-240.
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  7. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  8. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
  9. Wolfgang Koehling, 2002. "The Economic Consequences Of A Weak Judiciary: Insights From India," Law and Economics 0212001, EconWPA.
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Cited by:
  1. Mawussé K. N. Okey, 2011. "Institutional Reforms, Private Sector, and Economic Growth in Africa," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  2. Lichand, Guilherme & Soares, Rodrigo R., 2011. "Access to Justice and Entrepreneurship: Evidence from Brazil's Special Civil Tribunals," IZA Discussion Papers 5917, Institute for the Study of Labor (IZA).
  3. Lopez-de-Silanes, Florencio & La Porta, Rafael & Shleifer, Andrei, 2008. "The Economic Consequences of Legal Origins," Scholarly Articles 2962610, Harvard University Department of Economics.
  4. Miguel García-Posada & Juan S. Mora-Sanguinetti, 2014. "Entrepreneurship and enforcement institutions: Disaggregated evidence for Spain," Banco de Espa�a Working Papers 1405, Banco de Espa�a.
  5. Gani Aldashev, 2009. "Legal institutions, political economy, and development," Oxford Review of Economic Policy, Oxford University Press, vol. 25(2), pages 257-270, Summer.

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