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Economic Development, Legality, and the Transplant Effect

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Author Info
Daniel Berkowitz
Katharina Pistor
Jean-Francois Richard

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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.

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Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 308.

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Date of creation: 01 Feb 2000
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Handle: RePEc:wdi:papers:2000-308

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Related research
Keywords: transplant versus origin; receptive; unreceptive; direct and indirect transplants; legality;

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Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O57 - Economic Development, 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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    Other versions:
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