Legal System as a Determinant of Economic Performance: Factual Records in Romania

Author:Raluca Irina Clipa - Flavian Clipa - Dumitru Filipeanu
Position:Associate Professor, PhD, 'Gh. Zane' University, Romania - Senior Lecturer PhD, 'Gh. Zane' University, Romania - Senior Lecturer PhD, 'Gh. Zane' University, Romania
Pages:232-238
SUMMARY

The role of the legal system in generating economic performance is enjoying increased attention in literature. Our scientific endeavour tries to underline, from an original perspective, the incoherence which characterises the Romanian law and judicial system; at the same time, it also offers a few solutions meant to restore and reconsider the role of public institutions in the legislative and... (see full summary)

 
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European Integration - Realities and Perspectives
2012
232
Legal System as a Determinant of Economic Performance:
Factual Records in Romania
Clipa Raluca Irina
1
, Clipa Flavian
2
, Filipeanu Dumitru
3
Abstract: The role of the legal system i n generating economic performance is enjoying increased attention in
literature. Our scientific endeavour tries to underline, from an original perspective, the incoherence which
characterises the Romanian law and judicial system; at the same time, it also offers a few solutions meant to
restore and reconsider the role of public institutions in the legislative and judicial process. Considering the
facts presented in our study, the existence of efficient legal institutions, who enforce contracts ex post while
using the judicial infrastructure (courts and judicial procedures), is more than cr itical for the formation of an
agreement of will between contracting parties, thus generating economic performance for private
organisations by reducing transaction costs and by limiting the opportunism of economic agents. Equity,
predictability, transparency a nd reduced costs are advantages deriving from the legal enforcement of
contracts, which stimulate competition and trade, while reducing the risks associated with different types of
transactions. Thus, it is necessary to implement an anti-corruption policy, to enhance the predictability of the
law-making process, to reconsider and restore the attributions of institutions involved in the Romanian
legislative and judiciary process, in order to promote proper civil and commerc ial judicial procedures,
together with the analysis of the possibility to acknowledge jurisprudence as a source of law.
Keywords: law and judicial system; economic performance; institutions; transaction costs; contract enforcement
1. Introduction
The theoretical contributions and factual evidence found in literature tend to emphasize the important
role that state institutions have in ensuring economic growth and development, thus creating the
premises for the consolidation of an economic research nucleus regarding institutional implications.
Within this context, the analysis of the way in which the law system influences economic performance
becomes an extremely import ant topic in literature, raising a vivid general debate. Our scientific
endeavour subscribes to these efforts and tries to underline, from an original perspective, the
incoherence which characterises the Romanian law and judicial system; at the same time, it also offers
a few solutions meant to restore and reconsider the role of public institutions in the legislative and
judicial process.
Our scientific study commences with a theoretical and empirical approach of the observed
phenomenon, and subsequently continues with a brief digression on the general theory of law, in order
to show the optimal way in which the Romanian law and judicial system should function and to
contrast it with the current state of affairs, while emphasizing the way in which economic performance
is affected by the present situation.
1
Associate Professor, P hD, “Gh. Zane” University, Romania, 67 Blvd tefan cel Mare i Sfânt, bl. Casa Crii, Iasi 700064
Tel./fax +40232233752, Corresponding author: raluclipa@yahoo.com.
2
Senior
Lecturer P hD, “Gh. Zane” University, Romania, 67 Blvd tefan cel Mare i Sfâ nt, bl. Ca sa Crii, Iasi 700064
Tel./fax +40232233752, e-mail: flaclipa@yahoo.com.
3
Senior
Lecturer P hD, “Gh. Zane” University, Romania, 67 Blvd tefan cel Mare i Sfâ nt, bl. Ca sa Crii, Iasi 700064
Tel./fax +40232233752, e-mail: filipeanu@hotmail.com.

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