From courts to markets: on the effect of judicial efficiency on financial markets development

This study explores the role of judicial efficiency (JE) in advancing financial markets’ development (FMD), a key driver of economic growth. Utilizing a panel data set from 108 countries spanning 2004 to 2020, this research uncovers a significant positive effect of JE on FMD. The findings demonstrate that both time and cost efficiency in the enforcement of contracts through the judiciary exert a significant and positive impact on FMD. These findings underscore the importance of JE in fostering FMD and provide valuable insights for policymakers, financial institutions, and stakeholders aiming to stimulate economic growth through judicial reforms.