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Demand for Law in the African Private Sector

  • David L. Finnegan EMAIL logo
Veröffentlicht/Copyright: 24. April 2018

Abstract

This article develops a model for explaining private sector response to law reforms in developing countries. The dependent variable in this model is the demand for law – the extent to which business owners and firm managers engage the formal legal system and attempt to mobilize the law to their advantage when making market decisions. Demand for law is a crucial micro-connection in the causal chain linking law and law reform to market expansion and economic development. The theoretical framework developed here focuses on the interplay between informal and formal social institutions in influencing market decisions made by private sector actors. The article tests hypotheses generated by this framework by analyzing survey data collected from business firms in Dar es Salaam, Tanzania. The results support the hypothesis that demand for law is shaped by informal market institutions, particularly the informal business networks developed and maintained by firms. The analysis further suggests that these “demand-side” variables matter more than “supply-side” variables identified in the social science literature. These findings have important implications for law reform initiatives in developing countries and suggest avenues for further social science research on the relationship between law and economic development.

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Note

This article is based on Chapter 5 of my unpublished Ph.D. dissertation. They survey research reported here was supported in large part by a grant by the U.S. National Science Foundation.


Published Online: 2018-04-24
Published in Print: 2018-06-26

© 2018 Law and Development Review

Artikel in diesem Heft

  1. Frontmatter
  2. Introduction
  3. Mapping Law and Development from African Perspectives: An Overview
  4. Legal Pluralism and Effective Governance for Development in Africa
  5. The African Union Agenda 2063 and the Imperative of Democratic Governance
  6. Unpacking Legal Pluralism in Commonwealth Africa – Towards Strengthening Methods for Rule of Law Programming for Development
  7. Demand for Law in the African Private Sector
  8. OHADA and the Making of Transnational Commercial Law in Africa
  9. Corruption in Public Procurement in Lesotho
  10. Law and Industrial Promotion
  11. Law and Development: Lessons from South Korea
  12. Has it Reinvented Iron Law? South Africa’s Social Industrialisation, not Iron Industrialisation
  13. Law–Finance–Growth Nexus in the Context of Africa
  14. Inclusive Industrialization: The Interplay Between Investment Incentives and SME Promotion Policies in Sub-Saharan Africa
  15. Intellectual Property Rights for Development
  16. The Creative Industry and South African Intellectual Property Law
  17. Digital Rights Management System and Administration: A Wake-up Call for Nigeria!
  18. Enforcing Intellectual Property Rights in Nigerian Courts
  19. Poverty and Sustainable Development
  20. De-Growth and Sustainable Development: Rethinking Human Rights Law and Poverty Alleviation
  21. Macro Aid: Applying Microcredit’s Group Liability Principle to Foreign Aid
  22. Law as a Tool for Ensuring Contributions of Small-Scale Women Farmers to Food Security in Nigeria
  23. Law and Natural Resources
  24. The Protection and Promotion of a People’s Right to Mineral Resources in Africa: International and Municipal Perspectives
  25. Justifying Water Rights in Nigeria: Fiction or Achievable Panacea?
  26. Three Mining Charters and a Draft: How the Politics and Rhetoric of Development in the South African Mining Sector are Keeping Communities in Poverty
  27. Addressing Human Rights Concerns in the Extractive Resource Industry in Sub-Saharan Africa using the Lens of Article 46 (C) of the Malabo Protocol
  28. Wildlife Poaching and Rule of Law in Kenya
  29. Good Governance and Development in Botswana – The Democracy Conundrum
  30. Book Review
  31. Yong-Shik Lee: Reclaiming Development in the World Trading System
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