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Justice System Efficiency and Regional Economic Performance in Mexico

Author

Listed:
  • Chávez Juan Carlos
  • Fonseca Felipe J.
  • Gómez Zaldívar Manuel de Jesús

Abstract

We analyze the relationship between the economic growth rate and a rule of law indicator in Mexican states during the period 2006-2013. Specifically, we employ information regarding the time it takes to solve commercial disputes in local courts, which we use as a proxy variable to measure the efficiency of the justice system. In principle, we expect that the shorter the time it takes to resolve commercial disputes, the higher the growth rates will be in the states where the firms are located. The results suggest that a 100-day decrease in the average time it takes to resolve a commercial dispute is associated with an increase of 0.6 percent in the growth rate of state per capita GDP.

Suggested Citation

  • Chávez Juan Carlos & Fonseca Felipe J. & Gómez Zaldívar Manuel de Jesús, 2017. "Justice System Efficiency and Regional Economic Performance in Mexico," Working Papers 2017-08, Banco de México.
    • Handle: RePEc:bdm:wpaper:2017-08
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    File URL: https://www.banxico.org.mx/publicaciones-y-prensa/documentos-de-investigacion-del-banco-de-mexico/%7BF3EB1403-479F-32C5-4155-81395B7D91D9%7D.pdf
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    More about this item

    Keywords

    Economic Growth; Justice System; Regional Economies;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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