Rafael La Portaa, Florencio Lopez-de-Silanesb and Andrei Shleiferc
aTuck School of Business at Dartmouth, USA
bEDHEC Graduate School of Management, France
cHarvard University, USA
Abstract
In the last dozen years, economists have produced a considerable body of research suggesting that the historical origin of a country’s laws is highly correlated with a broad range of its legal rules and regulations, as well as with economic outcomes. Much of this research has dealt with rules governing investor protection and their effects on financial markets. We summarize this evidence and attempt a unified interpretation. We also address several objections to the empirical claim that legal origins matter. ...
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