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Decoding the Code of Civil Procedure: Do Judiciaries Matter for Growth?

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Author Info
Matthieu Chemin

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Abstract

This paper attempts to measure the causal impact of the speed of judiciaries on economic activity by using two novel instrumental variables measuring judicial procedural ambiguity and complexity. First, I find that temporally exogenous conflicting judicial decisions taken in India due to the Code of Civil Procedure's ambiguity lead to higher expected trial duration as judges are required to spend considerable time in choosing between several conflicting views. Second, I find that Inidan High Court amendments complicating procedures to treat a case are related to higher trial duration. By using spatial and temporal variations in the occurrence of conflicting decisions and enactment of amendments as instrumental variables, I am able to measure the impact of judicial speed on credit markets, agricultural development and manufacturing performance.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 0726.

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Date of creation: 2007
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Handle: RePEc:lvl:lacicr:0726

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Related research
Keywords: Law and economics; Institutions; Courts; Economic Growth; Industrial Performance;

Find related papers by JEL classification:
K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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