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Evolution of Corporate Law and the Transplant Effect: Lessons from Six Countries

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  • Katharina Pistor
  • Yoram Keinan
  • Jan Kleinheisterkamp
  • Mark D. West
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    Abstract

    The pattern of legal change in countries that have their legal systems transplanted from abroad differs markedly from countries that develop their own systems, irrespective of the legal family from which their laws come. In "transplant" countries, law often stagnates for long periods of time; when change takes place, it tends to be radical, if not erratic. External models remain dominant even years after the law was transplanted. Although there is some evidence that transplant countries have engaged in comprehensive legal reforms in response to the pressures of globalization, it is still too early to judge whether these new changes can be taken as a sign that the legal systems in these countries have started a process of endogenous legal evolution. Copyright 2003, Oxford University Press.

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    Bibliographic Info

    Article provided by World Bank Group in its journal The World Bank Research Observer.

    Volume (Year): 18 (2003)
    Issue (Month): 1 ()
    Pages: 89-112

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    Handle: RePEc:oup:wbrobs:v:18:y:2003:i:1:p:89-112

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    Cited by:
    1. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2007. "The Economic Consequences of Legal Origins," NBER Working Papers 13608, National Bureau of Economic Research, Inc.
    2. Aldashev, Gani & Chaara, Imane & Platteau, Jean-Philippe & Wahhaj, Zaki, 2012. "Using the law to change the custom," Journal of Development Economics, Elsevier, vol. 97(2), pages 182-200.
    3. Randall K. Morck & Lloyd Steier, 2005. "The Global History of Corporate Governance: An Introduction," NBER Working Papers 11062, National Bureau of Economic Research, Inc.
    4. Lee, Cassey, 2004. "Legal Traditions and Competition Policy," Centre on Regulation and Competition (CRC) Working papers 30697, University of Manchester, Institute for Development Policy and Management (IDPM).
    5. Attiya Y. Javid & Robina Iqbal, 2010. "Corporate Governance in Pakistan : Corporate Valuation, Ownership and Financing," Governance Working Papers 22830, East Asian Bureau of Economic Research.
    6. Arturo Bris & Neil Brisley, 2008. "A Theory of Optimal Expropriation, Mergers and Industry Competition," Yale School of Management Working Papers amz2522, Yale School of Management, revised 01 Jun 2009.
    7. Brisley, Neil & Bris, Arturo & Cabolis, Christos, 2011. "A theory of optimal expropriation, mergers and industry competition," Journal of Banking & Finance, Elsevier, vol. 35(4), pages 955-965, April.
    8. Kudrna, Zdenek, 2007. "Banking reform in China: Driven by international standards and Chinese specifics," MPRA Paper 7320, University Library of Munich, Germany.

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