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Creating a Legal Framework for Economic Development

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  • Posner, Richard A

Abstract

A modernizing nation's economic prosperity requires at least a modest legal infrastructure centered on the protection of property and contract rights. The essential legal reform required to create that infrastructure may be the adoption of a system of relatively precise legal rules, as distinct from more open-ended standards or a heavy investment in upgrading the nation's judiciary. A virtuous cycle can arise in which initially modest expenditures on law reform increase the rate of economic growth, in turn generating resources that will enable more ambitious legal reforms to be undertaken in the future. Copyright 1998 by Oxford University Press.

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  • Posner, Richard A, 1998. "Creating a Legal Framework for Economic Development," The World Bank Research Observer, World Bank, vol. 13(1), pages 1-11, February.
    • Handle: RePEc:oup:wbrobs:v:13:y:1998:i:1:p:1-11
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    References listed on IDEAS

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    3. Melanie S. Milo, 2007. "Integrated Financial Supervision : An Institutional Perspective for the Philippines," Finance Working Papers 22667, East Asian Bureau of Economic Research.
    4. Bertram C.I. Okpokwasili, 2016. "Institutions and Development: Are some more critical than others? – A Panel Study of 50 countries from 2002 to 2011," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 6(8), pages 43-60, August.
    5. Li, Shaomin & Filer, Larry, 2007. "The effects of the governance environment on the choice of investment mode and the strategic implications," Journal of World Business, Elsevier, vol. 42(1), pages 80-98, March.
    6. Chakravarty, Surajeet & Fonseca, Miguel A. & Ghosh, Sudeep & Marjit, Sugata, 2016. "Religious fragmentation, social identity and cooperation: Evidence from an artefactual field experiment in India," European Economic Review, Elsevier, vol. 90(C), pages 265-279.
    7. Bertram C.I. Okpokwasili, 2016. "Institutions and Development: Are some more critical than others? – A Panel Study of 50 countries from 2002 to 2011," International Journal of Business and Social Research, LAR Center Press, vol. 6(8), pages 43-60, August.
    8. Murrell, Peter, 2017. "Design and evolution in institutional development: The insignificance of the English Bill of Rights," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 36-55.
    9. Eicher, Theo S. & García-Peñalosa, Cecilia & Kuenzel, David J., 2018. "Constitutional rules as determinants of social infrastructure," Journal of Macroeconomics, Elsevier, vol. 57(C), pages 182-209.
    10. Emery, Thomas & Mélon, Lela & Spruk, Rok, 2023. "Does e-procurement matter for economic growth? Subnational evidence from Australia," The Quarterly Review of Economics and Finance, Elsevier, vol. 89(C), pages 318-334.
    11. Melcarne, Alessandro & Ramello, Giovanni B. & Spruk, Rok, 2021. "Is justice delayed justice denied? An empirical approach," International Review of Law and Economics, Elsevier, vol. 65(C).
    12. Gozgor, Giray & Lau, Chi Keung Marco & Zeng, Yan & Lin, Zhibin, 2019. "The effectiveness of the legal system and inbound tourism," Annals of Tourism Research, Elsevier, vol. 76(C), pages 24-35.

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