Legal Systems and
Economic Growth
By Vadym Cemmasson and Dariane Dank
Legal Systems
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Three major legal systems
Civil Law (France, Germany, Italy, Brazil, Mexico, Russia)
(80)
Common Law (GB, USA (-Louisiana), Canada (- Quebec),
Australia) (23)
Religious Law (Afghanistan, Saudi Arabia, Maldives
Islands) (4)
Legal Systems
Legal Systems
Civil Law
 The oldest and most widespread system of law in the
world
 Based on Roman law especially Corpus Juris Civilis
(“Body of Civil Law”) -> compiled to the code under the
Byzantine Emperor Justinian
 Prominent example: Code Civil is the French Law Code
established by Napoléon Bonaparte (Code Napoléon)
 Civil law is interpreted by judges rather than developed
or made by them
Legal Systems
Common Law
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System of law whose sources are the decisions in cases
by judges
Legislature passes new laws and statutes -> do not
amend a collected and codified body of law
Developed in England and influenced by the Norman
conquest of England (William the Conqueror)
Inherited by the Commonwealth of Nations (adopted by
almost every former British colony)
Magna Carta -> fundamental document (limited on the
power of the English Kings)
Stare decisis -> major difference to civil law system
Legal Systems
Religious Law
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Refers to the notion of a religious system or document
being used as a legal source
The use of Jewish Halakah for public law -> precluding
amendment through legislative acts of government or
development through judicial precedent
Christian Canon law is more similar to civil law
Islamic Sharia law is based on legal precedent and
reasoning by analogy
Legal Systems
Pluralistic Law
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Civil law and common law (Israel, Philippines)
Civil law and religious law (Iraq, Iran, Egypt)
Common law and religious law (India, Bangladesh)
Legal Systems
Comparative Law
The study of differences and similarities between the law in
different countries.
Separate branches of comparative law:
 Constitutional law
 Administrative law
 Civil law
 Commercial law
 Criminal law
Legal Systems
International Law
The system of implicit and explicit agreements that bind
together nation-states in adherence to recognized values
and standards.
 It primarily concerns states rather than private citizens
 Public international law
 Private international law
 Supranational law
Legal Systems World
distribution
Economic Growth
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Common law countries tend to protect
investors (directly) more than civil law
countries
(shareholders value)
Civil law countries => adaptive protection
mechanisms (indirect protection f.e. different
accounting standards)
(stakeholder value)
„Law and Finance“,La Porta, Shleifer; Harvard University
Average GNI
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Gross National Income (GNI) comprises the total value
produced within a country (i.e. its Gross Domestic
Product), together with its income received from other
countries (notably interest and dividends), less similar
payments made to other countries.
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Legal Systems with civil law components: 6 449
Legal systems with common law components: 7 150
Legal systems with civil law and common law
components: 11 948
Thank you for your attention!