Effects of rule of law on firm performance in South Africa

Purpose – South Africa (SA) has undertaken significant institutional reforms since the change in its political regime in 1994. During the same period, SA has also experienced rapid economic growth. Although it is widely accepted that institutional reform generally has positive impacts on firm competitiveness and economic growth, the extent to which institutional reforms in SA have been of benefit to businesses is not well understood. The purpose of this paper is to focus specifically on the rule of law and assesses the extent to which the rule of law affects business performance.