Does legal representation increase investment? Evidence from a field experiment in Kenya

• 成果类型: Article
• 署名作者: Aberra, Adam; Chemin, Matthieu
• 署名单位: McGill University; McGill University; Universite de Montreal
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2020.102612
• 发表日期: 2021
• 关键词: Legal system; INVESTMENT

摘要

The legal system enforces contracts and secures property rights, thereby increasing the incentives to exert effort, invest, access credit, and grow. Yet, the high costs of access to the legal system may prevent these gains from taking place. This paper presents the results of a randomized intervention offering the services of a free lawyer for 2 years in a rural setting with prohibitive lawyer fees and numerous land disputes. Not all cases were fully resolved after 2 years, but legal representation increased the security of property rights, which translated into greater investment and access to credit.