Economic value of English law | Oxera

3.1: Introduction

Published: October 5th 2021
Chapter 3

3.1: Introduction


In thinking about value, economists usually consider the difference between scenarios (often the ‘factual’—i.e. the observed state of the world—and the ‘counterfactual’—i.e. the state of the world in which the object of interest has changed). In the current instance, the ‘object’ of interest is English law. Under most conceivable states of the world, UK businesses would be likely to use English law for domestic transactions.[1]We note that UK businesses may also use the laws of Scotland and Northern Ireland in domestic transactions—however, the focus of this report is on English law, and specifically on internationally … Continue reading Therefore, it is likely that English law generates a significant portion of its economic value for the UK through its application in internationally mobile transactions—transactions in which parties can choose the law that governs the contract. This is where many risks and opportunities lie.

The mechanisms through which the use of English law for internationally mobile transactions generates value for the UK are discussed in the following subsections.

  • Section 3.2 discusses the value created within the UK legal services ecosystem from the use of English law in internationally mobile transactions. At this stage, it is important to note that the UK legal services ecosystem is a part of the UK economy more broadly, and thus benefits to it should be seen in that light.
  • Section 3.3 concerns the value for the UK economy as a whole from the use of English law in internationally mobile transactions.
  • Section 3.4 outlines how the value for the UK can vary depending on the choice of law and jurisdiction used for these internationally mobile transactions.

References

References
1We note that UK businesses may also use the laws of Scotland and Northern Ireland in domestic transactions—however, the focus of this report is on English law, and specifically on internationally mobile transactions governed by English law.