3.3: The economic value created for the UK as a whole
The previous subsection considered the value that English law brings to the legal services ecosystem (itself part of the UK economy). However, the export of English law generates significant value for the UK beyond the bounds of the legal services ecosystem. We identify three mechanisms through which the export of English law creates value for the UK and provides the foundations for the development of globally significant UK-based markets such as financial markets and instrument trading.
- English law is often one of the first to provide solutions to complex market issues, driving greater volumes of transactions under English law as a global market standard. This in turn provides certainty and predictability in the law and allows the law to evolve continuously to reflect the issues that businesses face.
- Knowledge sharing through agglomeration effects increases the productivity, innovation and competitiveness of the UK economy.
- The widespread use of English law globally reduces transaction costs for UK businesses trading internationally.