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Economic Development, Legality, and the Transplant Effect

Listed author(s):
  • Daniel Berkowitz
  • Karina Pistor
  • Jean-Francois Richard

We analyze the determinants of effective legal institutions (legality) using data from forty-nine 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, while the impact of particular legal families is weaker and not robust to alternative legality measures.

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File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/39794/3/wp410.pdf
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Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 410.

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Length: pages
Date of creation: 01 Sep 2001
Handle: RePEc:wdi:papers:2001-410
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