The Effects of Litigation Settlement Process on the Economic Growth of D8 Group Countries

Nowadays improving business environment is an effective method in achieving more economic growth and creating employment. Judicial system is one of important components of business environment so it is necessary to study its effects on the economic growth as one of important index of the business environment. This study using pooled data، evaluates the relation between judicial system and economic growth of D8 group countries during 2004-2009. Our Results suggest that the increase of litigation procedures، time and expenses leads to reduction of D8 countries economic growth. According to the results for every one percent decrease in judicial system efficiency، economic growth of these countries decreases about 1. 95 percent. With adding institutional quality index to the model the negative effect of time factor on the economic growth is also confirmed