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Does legal representation increase investment? Evidence from a field experiment in Kenya

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  • Aberra, Adam
  • Chemin, Matthieu

Abstract

The legal system enforces contracts and secures property rights, thereby increasing the incentives to exert effort, invest, access credit, and grow. Yet, the high costs of access to the legal system may prevent these gains from taking place. This paper presents the results of a randomized intervention offering the services of a free lawyer for 2 years in a rural setting with prohibitive lawyer fees and numerous land disputes. Not all cases were fully resolved after 2 years, but legal representation increased the security of property rights, which translated into greater investment and access to credit.

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  • Aberra, Adam & Chemin, Matthieu, 2021. "Does legal representation increase investment? Evidence from a field experiment in Kenya," Journal of Development Economics, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:deveco:v:150:y:2021:i:c:s0304387820301875
    DOI: 10.1016/j.jdeveco.2020.102612
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    2. Omar Al-Ubaydli & Faith Fatchen & John List, 2024. "Using Field Experiments to Understand the Impact of Institutions on Economic Growth," Natural Field Experiments 00787, The Field Experiments Website.
    3. Seth Garz & Xavier Gine & Dean Karlan & Rafe Mazer & Caitlin Sanford & Jonathan Zinman, 2021. "Consumer Protection for Financial Inclusion in Low- and Middle-Income Countries: Bridging Regulator and Academic Perspectives," Annual Review of Financial Economics, Annual Reviews, vol. 13(1), pages 219-246, November.

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