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Economic Development, Legality, and the Transplant Effect

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2000-03

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Center for International Development at Harvard University
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Berkowitz, Daniel, Katharina Pistor, and Jean-Francois Richard. “Economic Development, Legality, and the Transplant Effect.” CID Working Paper Series 2000.39, Harvard University, Cambridge, MA, March 2000.

Abstract

We analyze the determinants of effective legal institutions (legality) using data from 49 countries. We show that the way the law was initially transplanted and received is a more important determinant than the supply of law from a particular legal family. Countries that have developed legal orders internally, adapted the transplanted law, and/or had a population that was already familiar with basic principles of the transplanted law have more effective legality than countries that received foreign law without any similar predispositions. The transplanting process has a strong indirect effect on economic development via its impact on legality.

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