The importance of law and legal institutions for economic development is widely acknowledged today. The invention of credit mechanisms to support long-distance trade has been hailed as one of the preconditions for the development of capitalism in Europe. The corporate form is regarded as another milestone for industrialization, the creation of viable market economies, and ultimately economic prosperity. Many former socialist countries quickly enacted new corporate codes or revived their pre-World War Two ("WWII") legislation. The failure of major privatization efforts to enhance enterprise efficiency is attributed to weaknesses in corporate governance, of which the corporate law is a crucial element. Similarly, improvements in corporate governance have become a major goal for economies in East and South East Asia that were hit by the 1997-98 East Asian financial crisis.
Business Organizations Law | Contracts | Law
Katharina Pistor, Yoram Keinan, Jan Kleinheisterkamp & Mark D. West,
The Evolution of Corporate Law: A Cross- Country Comparison,
U. Pa. J. Int'l Econ. L.
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