Judicial efficiency and economic growth: Evidence based on European Union data

We investigate the effects of judicial efficiency on economic growth using a new dataset over the period 2010–2018 drawn by the European Union Justice Scoreboard. To do so, we estimate a growth equation controlling for alternative de facto judicial efficiency indicators. Our findings suggest that operational inefficiencies of judicial systems undermine economic growth, weakening its capability to safeguard the enforcement of private contracts and the security of property rights. Our results are robust when we account for endogeneity and also provide significant policy implications.