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The Impact of the Judiciary on Entrepreneurship: Evaluation of Pakistan's Access to Justice Programme

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  • Matthieu Chemin

Abstract

A key element of government is to uphold law and order. This paper will evaluate the impact of slow judiciaries on entrepreneurship. In 2002 a judicial reform was implemented in 6 of Pakistan's 117 districts to facilitate rapid case disposal. Drawing on a panel dataset of 875 district judges' performance between 2001 and 2003, a difference-in-differences analysis shows that judges disposed of 25 percent more cases thanks to the reform. Three rounds of the Labour Force Surveys will be then used to show that the reform improved security of property rights, encouraged people to seek loans, fostered entrepreneurship and was associated with increased transition from unemployment and paid employment to entrepreneurship.

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Bibliographic Info

Paper provided by CIRPEE in its series Cahiers de recherche with number 0727.

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Date of creation: 2007
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Handle: RePEc:lvl:lacicr:0727

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Keywords: Legal System; Entrepreneurship;

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  1. Timothy Frye & Ekaterina Zhuravskaya, 2000. "Rackets, Regulation and the Rule of Law," Working Papers w0002, Center for Economic and Financial Research (CEFIR).
  2. Timothy Besley & Robin Burgess, 2002. "Can labour regulation hinder economic performance? Evidence from India," LSE Research Online Documents on Economics 3779, London School of Economics and Political Science, LSE Library.
  3. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  4. 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.
  5. Simeon Djankov & Yingyi Qian & Gerard Roland & Ekaterina Zhuravskaya, 2005. "Who Are China’s Entrepreneurs?," Working Papers w0047, Center for Economic and Financial Research (CEFIR).
  6. Wolfgang Koehling, 2002. "The Economic Consequences Of A Weak Judiciary: Insights From India," Law and Economics 0212001, EconWPA.
  7. 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.
  8. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
  9. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages F672-94, November.
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Cited by:
  1. 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).
  2. Lopez-de-Silanes, Florencio & La Porta, Rafael & Shleifer, Andrei, 2008. "The Economic Consequences of Legal Origins," Scholarly Articles 2962610, Harvard University Department of Economics.
  3. 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).
  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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