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

CIRPEE Working Paper No. 07-27

49 Pages Posted: 3 Oct 2007

See all articles by Matthieu Chemin

Matthieu Chemin

University of Quebec at Montreal (UQAM)

Date Written: September 2007

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.

Keywords: Legal System, Entrepreneurship

JEL Classification: H11, H41, K42, O12, L26

Suggested Citation

Chemin, Matthieu, The Impact of the Judiciary on Entrepreneurship: Evaluation of Pakistan's Access to Justice Programme (September 2007). CIRPEE Working Paper No. 07-27, Available at SSRN: https://ssrn.com/abstract=1018901 or http://dx.doi.org/10.2139/ssrn.1018901

Matthieu Chemin (Contact Author)

University of Quebec at Montreal (UQAM) ( email )

PB 8888 Station DownTown
Succursale Centre Ville
Montreal, Quebec H3C3P8
Canada

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