Contract Enforcement and Investment: A Systematic Review of the Evidence

Diego Aboal, CINVE, Montevideo, Uruguay

This “systematic review” focuses on the empirical research that evaluates the causal link between contract enforcement and
investment. The evidence available in a variety of academic media, reviewed with established procedures, provides some but weak support
for the existence of such link. During 1990–2010 we only found 19 independent studies that empirically test the relationship, and
only one that directly examines the effects of an actual institutional reform. Few of the studies test alternative explanations, perform
robustness checks, or critically assess the findings. In sum, the broadly accepted hypothesis of direct causation is still awaiting strong
empirical backing.

About the speaker
Diego Aboal is the Director of the Centre for Economic Research (CINVE-Uruguay). He holds a PhD in Economics from the University of Essex (UK), a Master of Science in Economics from the London School of Economics (UK) and a Master in Economics and a BA in Economics from the Universidad de la Republica (Uruguay). He is Professor at the Universidad ORT Uruguay and Universidad de la Republica (Uruguay). During 2007-2008 he was a temporary Lecturer of Econometrics in the Master of Finance at the University of Cambridge (UK). His main research areas are: economics of innovation, political economy and economics of crime and violence. His papers have been accepted for publication, for example, in World Development and Emerging Markets Finance and Trade.

Venue: Conference Rooom

Date: 21 May 2015

Time: 12:30 - 13:30  CEST