Economic Growth and Judicial Independence, a Dozen Years on: Cross-Country Evidence Using an Updated Set of Indicators

35 Pages Posted: 22 Oct 2014

See all articles by Stefan Voigt

Stefan Voigt

University of Hamburg - Institute of Law & Economics; CESifo (Center for Economic Studies and Ifo Institute)

Jerg Gutmann

University of Hamburg - Institute of Law and Economics

Lars P. Feld

Walter Eucken Institute

Multiple version iconThere are 2 versions of this paper

Date Written: October 21, 2014

Abstract

Over 10 years ago, Feld and Voigt (2003) introduced the first indicator for objectively measuring the actual independence of the judiciary and demonstrated its utility in a large cross-section of countries. The indicator has been widely used, but also criticized. This paper presents more recent data on de jure and de facto judicial independence (JI) and strongly confirms previous results that de jure JI is not systematically related to economic growth, but de facto JI is highly significantly and robustly correlated with growth. In addition, we show that the effect of de facto JI depends on the institutional environment, but not on a country’s initial per capita income.

Keywords: judicial independence, economic growth, rule of law, constitutional economics, governance, measuring institutions

JEL Classification: H11, K40, O40, P51

Suggested Citation

Voigt, Stefan and Gutmann, Jerg and Feld, Lars P., Economic Growth and Judicial Independence, a Dozen Years on: Cross-Country Evidence Using an Updated Set of Indicators (October 21, 2014). CESifo Working Paper Series No. 5010, Available at SSRN: https://ssrn.com/abstract=2512753

Stefan Voigt (Contact Author)

University of Hamburg - Institute of Law & Economics ( email )

Johnsallee 35
Hamburg, 20148
Germany
+49-40-428385782 (Phone)
+49-40-428386794 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Jerg Gutmann

University of Hamburg - Institute of Law and Economics ( email )

Johnsallee 35
Hamburg, 20148
Germany

Lars P. Feld

Walter Eucken Institute ( email )

Goethestrasse 10
Freiburg im Breisgau, Baden-Württemberg D-79100
Germany

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