Publication Date

2009

Publication Title

Washington University Global Studies Law Review

Abstract

This Essay examines the under-studied relationship between liberalization and litigation. Liberalization should lead to expanded civil litigation for four reasons: (1) new market entrants are less subject to informal sanctions and may have a greater propensity to go to court, (2) privatization transfers resources away from the state, expanding the number of transactions subject to civil law regimes, (3) liberalization reduces the government's ability to resolve disputes outside the courts; and (4) liberalization leads to economic development, which is generally litigation-enhancing. We test these propositions using a unique dataset of prefecture-level civil litigation data in Japan during the 1990s. Using panel data, we find a small but significant effect of foreign firms on litigation.

Additional Information

The Law in Japan: A Celebration of the Works of John Owen Haley: Articles & Essays

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