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The Impact of the Judiciary on Entrepreneurship: Evaluation of Pakistan's Access to Justice Programme

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  • Matthieu Chemin

Abstract

A key element of government is to uphold law and order. This paper will evaluate the impact of slow judiciaries on entrepreneurship. In 2002 a judicial reform was implemented in 6 of Pakistan's 117 districts to facilitate rapid case disposal. Drawing on a panel dataset of 875 district judges' performance between 2001 and 2003, a difference-in-differences analysis shows that judges disposed of 25 percent more cases thanks to the reform. Three rounds of the Labour Force Surveys will be then used to show that the reform improved security of property rights, encouraged people to seek loans, fostered entrepreneurship and was associated with increased transition from unemployment and paid employment to entrepreneurship.

Suggested Citation

  • Matthieu Chemin, 2007. "The Impact of the Judiciary on Entrepreneurship: Evaluation of Pakistan's Access to Justice Programme," Cahiers de recherche 0727, CIRPEE.
    • Handle: RePEc:lvl:lacicr:0727
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    More about this item

    Keywords

    Legal System; Entrepreneurship;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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