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Timely justice as a determinant of economic growth

Author

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  • Djankov, Simeon
  • Melcarne, Alessandro
  • Ramello, Giovanni B.
  • Spruk, Rok

Abstract

We investigate how timeliness in enforcing legal contracts affects economic growth across countries. We focus on judicial timeliness as a proxy for courts’ performance in a large panel of 169 countries over the 2004–2019 period. We show that, by raising uncertainty and promoting opportunistic behaviors in business transactions, slower courts hinder economic development. The relationship is robust to diverse model specifications and appears stronger for business environments more heavily relying on judiciaries such as economies undergoing rapid growth, countries characterized by low human capital and civil law jurisdictions.

Suggested Citation

  • Djankov, Simeon & Melcarne, Alessandro & Ramello, Giovanni B. & Spruk, Rok, 2025. "Timely justice as a determinant of economic growth," Journal of Economic Behavior & Organization, Elsevier, vol. 238(C).
    • Handle: RePEc:eee:jeborg:v:238:y:2025:i:c:s0167268125003543
    DOI: 10.1016/j.jebo.2025.107235
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    Cited by:

    1. Stefano Dughera & Alessandro Melcarne, 2025. "Judicial enforcement as a worker discipline device," European Journal of Law and Economics, Springer, vol. 60(2), pages 227-247, October.
    2. Giovanni B. Ramello, 2025. "Rethinking comparative economics," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 22(2), pages 177-190, December.

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    Keywords

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    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • H4 - Public Economics - - Publicly Provided Goods

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