Brief Description
An increasingly popular view holds that institutions--in particular, the rule of law--are the keys to unlocking the developing world's full growth potential. But what exactly does this mean? Which legal institutions matter and why? How can policymakers use this knowledge to promote growth? In "The Law-Growth Nexus," Kenneth Dam brings five decades of experience as a legal scholar and policymaker to bear upon these questions. After reviewing the burgeoning literature on legal institutions and economic development, Dam unpacks the "rule of law" concept. Successive chapters analyze enforcement, contracts, and property rightsthe three concepts that collectively define rule of lawand examine their roles in the real estate and financial sectors. Dam uses an extended analysis of China to assess the importance of the rule of law. This case study illustrates several of the book's central themes, including the difficulty of building a strong, independent judiciary and firstclass financial sector. The stark fact is that many parts of what we call the developing world have stopped developing, while other regions have seen a slowdown in once-promising growth. Could new or better legal institutions help jumpstart these economies? In exploring this question, Th "e Law-Growth Nexus g"oes beyond regression results to examine the underlying mechanisms through which the law, the judiciary, and the legal profession influence the economy. The result is essential reading for analysts and policymakers facing the challenges of legal and economic reform."
Review Quotes
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"Very thoughtful book...highly readable to the interested lay person." --Kenneth M. Davidson, American Antitrust Institute, "American Antitrust Institute Commentary", 2/19/2007
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"A serious, comprehensive study...Dam provides a critical examination of the literature regarding the rule of law issue...This extraordinary study should be in every economic development collection. Excellent bibliography. Essential." --M. Veseth, University of Puget Sound, "CHOICE", 5/1/2007
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"An excellent contribution to this burgeoning literature....Dam does an excellent job of succinctly explaining the assumptions and methodology that led the law and finance literature to conclude that the common law is superior to the civil law in terms of being conducive to economic growth." -- "Law & Politics Book Review"
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"An informative and fresh look at the relationship of law to economic development that will be of use to newcomers to the subject as well as seasoned researchers. This book could be used as a textbook for the study of law and development." -- "Development and Change"
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"Dam shows clearly that every country is different and that there are no ready solutions and he provides policy makers with a framework that they have to take into account when enacting new legal rules." -- "Global and European Law Books", 10/5/2007
