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From Justice to Prosperity: The Rule of Law’s Impact on Economic Performance in the European Union

Author

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  • Krasimira Stefanova Valcheva

    (University of National and World Economy, Sofia, Bulgaria)

Abstract

The rule of law plays an important role in fostering and advancing economic growth, not just within the EU, but on a global scale. The purpose of this article is to provide insight into the complex connections between law and economic development by combining empirical research and theoretical perspectives, and thus to further contribute to a deeper understanding of their complex dynamics. Certain correlations that are commonly acknowledged are confirmed, along with few notable exceptions. The findings underscore the imperative to cultivate a nuanced comprehension of how the rule of law influences economic performance, as such understanding is crucial for the decisionmaking processes of policymakers and companies, allowing them to adopt informed and well-founded decisions.

Suggested Citation

  • Krasimira Stefanova Valcheva, 2024. "From Justice to Prosperity: The Rule of Law’s Impact on Economic Performance in the European Union," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 895-913, December.
    • Handle: RePEc:nwe:eajour:y:2024:i:4:p:895-913
    as

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    File URL: https://www.unwe.bg/doi/eajournal/2024.4/EA.2024.4.11.pdf
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    References listed on IDEAS

    as
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    4. Haggard, Stephan & Tiede, Lydia, 2011. "The Rule of Law and Economic Growth: Where are We?," World Development, Elsevier, vol. 39(5), pages 673-685, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    foreign direct investments; innovation index; GDP per capita; rule of law; economic performance;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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