The Rule of Law and Economic Growth: Where are We?

Posted: 16 Aug 2011

See all articles by Stephan M. Haggard

Stephan M. Haggard

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS)

Lydia Brashear Tiede

University of Houston - Department of Political Science

Date Written: May 1, 2010

Abstract

It is widely assumed that the rule of law is essential for economic growth. However, the rule of law is clearly a multidimensional concept, encompassing a variety of discrete components from security of person and property rights, to checks on government and control of corruption. We review the theory underlying these different causal mechanisms linking the rule of law to economic growth, and provide an introduction to some outstanding measurement issues. We find that the correlation among different components of the rule of law concept are not tight among developing countries and that some inferences about the effects of property rights protection may not be warranted.

Keywords: rule of law, economic growth, institutions, economic volatility, developing countries

Suggested Citation

Haggard, Stephan M. and Tiede, Lydia Brashear, The Rule of Law and Economic Growth: Where are We? (May 1, 2010). World Development, Vol. 39, No. 5, 2011, Available at SSRN: https://ssrn.com/abstract=1910429

Stephan M. Haggard

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS) ( email )

9500 Gilman Drive
La Jolla, CA 92093-0519
United States
858-534-5781 (Phone)
858-534-3939 (Fax)

Lydia Brashear Tiede (Contact Author)

University of Houston - Department of Political Science ( email )

4800 Calhoun Road
Houston, TX 77204
United States

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