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Economic Development, Legality, and the Transplant Effect

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  • Daniel Berkowitz
  • Katharina Pistor
  • Jean-Francois Richard

Abstract

We analyze the determinants of effective legal institutions (legality) using data from 49 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.

Suggested Citation

  • Daniel Berkowitz & Katharina Pistor & Jean-Francois Richard, 2000. "Economic Development, Legality, and the Transplant Effect," William Davidson Institute Working Papers Series 308, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2000-308
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    More about this item

    Keywords

    transplant versus origin; receptive; unreceptive; direct and indirect transplants; legality;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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