Foreword
Summary
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A1
Acknowledgements
Figures and tables
Economic value of English law | Oxera

Chapter 2: How does the law deliver economic value to society?

Published: October 5th 2021
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3.1: Introduction 3.2: The economic value created through the UK legal services ecosystem 3.3: The economic value created for the UK as a whole -3.3.1: English law as a global market standard -3.3.2: Agglomeration effects -3.3.3: Reduced transaction costs for UK businesses trading internationally 3.4: The choice of law and legal services for internationally mobile transactions
4.1: Introduction 4.2: English law provides significant value to the UK economy -4.2.1: Maritime sector -4.2.2: Commodity trading -4.2.3: ISDA swaps and derivatives -4.2.4: International insurance contracts -4.2.5: The value of English law to the UK economy is significant 4.3: Risks and opportunities 4.4: Future opportunities for the use of English law represent significant potential value to the UK
5.1: Introduction 5.2: English law suffers from a type of ‘market failure’ 5.3: Solutions to the free-rider problem: coordination across private and public parties 5.4: How to manage the ‘provision’ of English law
A1.1: Maritime sector -A1.1.1: Size of the market -A1.1.2: Overview of governing laws -A1.1.3: Risks and opportunities A1.2: Commodity trading -A1.2.1: Size of the market -A1.2.2: Overview of governing laws -A1.2.3: Risks and opportunities A1.3: ISDA swaps and derivatives -A1.3.1: Size of the market -A1.3.2: Overview of governing laws -A1.3.3: Risks and opportunities A1.4: International insurance contracts -A1.4.1: Size of the market -A1.4.2: Overview of governing laws -A1.4.3: Risks and opportunities
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Chapter 2

Chapter 2: How does the law deliver economic value to society?

  • The law, in general, adds value to society. However, there is no established framework for assessing the economic value of the law, rather than the legal services sector. It is therefore necessary to start by asking what the economic characteristics of the law that create economic value are.
  • Economic value is created through the ‘gains from trade’ made possible by transactions between businesses, organisations and individuals.
  • The law (as it applies to business transactions) provides economic value by underpinning growth in such transactions by promoting greater confidence between parties.
  • The law is a vital piece of infrastructure on which economic activity occurs.
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