BBR: Brazilian Business Review (Jan 2021)

Economic Growth, Markets and the Rule of Law: Brief Considerations on the Brazilian Case

  • Alexandre B. Cunha

DOI
https://doi.org/10.15728/bbr.2021.18.2.5
Journal volume & issue
Vol. 18, no. 2
pp. 196 – 216

Abstract

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The existence of markets that operate smoothly is an important factor influencing a nation’s economic growth. Furthermore, an effective judicial system is a necessary condition for markets to function well. Therefore, it is reasonable to expect a positive relationship to exist between income per capita and adhesion to the rule of law. This conjecture is corroborated here in a sample of 110 countries in 2016. Additionally, the data show that the rule of law is relatively weak in Brazil, suggesting that an improvement of the Brazilian judicial system is a potential growth-enhancing reform.

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