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The Rule of Law and Labor Productivity Growth by Businesses: Evidence for the EU, 1998–2005

In: Intangible Capital and Growth

Author

Listed:
  • Felix Roth

    (University of Hamburg)

Abstract

This contribution analyses the relationship between the rule of law and labor productivity growth by businesses within an EU country sample over the period 1998–2005. It finds that the rule of law affects labor productivity growth (LPG) by businesses within the EU via two distinct channels. First, the rule of law positively affects labor productivity growth by stimulating total factor productivity (TFP) growth. Second, the rule of law positively influences business investments in intangible capital. The author concludes that the rule of law is beneficial in facilitating an economy’s transformation towards becoming a knowledge economy.

Suggested Citation

  • Felix Roth, 2022. "The Rule of Law and Labor Productivity Growth by Businesses: Evidence for the EU, 1998–2005," Contributions to Economics, in: Intangible Capital and Growth, chapter 0, pages 43-72, Springer.
    • Handle: RePEc:spr:conchp:978-3-030-86186-5_3
    DOI: 10.1007/978-3-030-86186-5_3
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    More about this item

    Keywords

    E02; E22; O34; O43; O52; P14;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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