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Law and Investment in Africa

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  • Simplice A. Asongu

    (African Goverance and Development Institute, Cameroon)

Abstract

Contrary to mainstream consensus on the dominance of English common law countries in investment prospects, this paper sets a new tone in the legal origins debate by providing empirical validity on the dominance of French civil law countries in private investment. This assessment is based on 38 African countries for the period 1996-2007. The law mechanisms of regulation quality and rule of law are used to investigate how legal origins (French, English, French sub-Saharan, Portuguese and North African) have influenced a plethora of investment dynamics (domestic, foreign, private and public). The dominance of French civil law countries in prospects for private investments could be traceable to their relatively low and stable inflation rates due to common monetary policies.

Suggested Citation

  • Simplice A. Asongu, 2016. "Law and Investment in Africa," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 8(2), pages 95-124, April.
    • Handle: RePEc:umk:journl:v:8:y:2016:i:2:p:95-124
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    References listed on IDEAS

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    Cited by:

    1. Simplice A, Asongu, 2012. "Politics and Consumer Prices in Africa," MPRA Paper 36174, University Library of Munich, Germany.
    2. Simplice A. Asongu, 2014. "Finance and Democracy in Africa," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 6(3), pages 92-116, October.
    3. Asongu Simplice, 2012. "Financial determinants of consumer price inflation. What do dynamics in money, credit, efficiency and size tell us?," Working Papers of the African Governance and Development Institute. 12/019, African Governance and Development Institute..

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    More about this item

    Keywords

    Developing countries; law; investment;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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