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

2.1: Introduction

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

2.1: Introduction

The law, in general, adds value to society. Despite the differences in their approaches, [1]For examples of the literature considering differences between common law and civil law, see La Porta et al. (2008), ‘The economic consequences of Legal origins’, Journal of Economic Literature, … Continue reading all types of governing law are likely to provide some benefit to society through the same underlying mechanisms. In this section, we assess how the law in general can deliver economic value to society. [2]As mentioned in the introduction, the law, and English law specifically, provides significant benefits to society over and above its economic value. This includes establishing and maintaining … Continue reading In section 3, our focus turns to how English law benefits the UK economy.

There is no established framework for assessing and describing how the law itself, rather than the legal services sector, contributes to the wider economy. Accordingly, it is important to begin by identifying the way in which the law creates economic value in society.

This section is structured as follows.

  • Section 2.2 describes how economic value is created through transactions.
  • Section 2.3 explains how the law underpins growth in transactions.
  • Section 2.4 describes how the law is a form of global business infrastructure.

References

References
↑1For examples of the literature considering differences between common law and civil law, see La Porta et al. (2008), ‘The economic consequences of Legal origins’, Journal of Economic Literature, 46:2, pp. 285–332; and Mahoney, P. (2001), ‘The common law and economic growth: Hayek might be right’, The Journal of Legal Studies, 30:2, pp. 503–25.
↑2As mentioned in the introduction, the law, and English law specifically, provides significant benefits to society over and above its economic value. This includes establishing and maintaining standards, upholding fairness, and facilitating social change. However, the focus of this report is on the economic value that English law—specifically as it relates to business contracts and transactions—brings to the UK.