As we set out in section 4.1, for the purpose of this study, we have examined four examples in detail. These serve to illustrate the potential value for the UK economy that is underpinned by English law in those sectors, giving us multiple perspectives on the economic value of English law to the UK. However, in addition to this suite of numbers, there are many other examples we could have chosen where English law contributes significant value. For instance, we calculate that the total value of global mergers and acquisitions (M&A) deals governed by English law was approximately £250bn in 2019.Oxera analysis based on data provided by Allen & Overy, and Dealogic (2020), ‘Value of merger and acquisition deals worldwide in 2019, by region’. Other examples where English law may be particularly prominent include the construction sector, energy contracts, insolvency, and bond issuance among others.
In each of these examples, a large number of transactions are internationally mobile, and these represent significant economic value. Therefore, the potential value highlighted in the sections above, while already very significant, is likely to account for only a small portion of the total value of English law to the UK economy.
Indeed, the value of English law to the UK economy is likely to be far greater than the sum of these individual parts thanks to agglomeration and network effects (as discussed in section 3.3). In addition, English law is likely to add value through channels we have not attempted to quantify for this report, such as its important role in contributing to maintaining the UK’s influence and ability to promote British values. Academic research in the sociology and political science literature has discussed various states’ political strategies such as in international education: Lomer, S. (2017), ‘Soft power as a … Continue reading
We expand on this further in Box 4.1 below.