Effect of Judicial Independence on Gross Domestic Production (Cross-Country Study Using Panel Data Method)

Judicial system as one dimensions of institutional framework have a crucial role in economic performance of societies. Judicial independence is a main key for effective protection of private property rights. Independent and efficient judicial system affect the private property security, investment predictability and thus economic growth through guaranteeing contracts and punish the violation of the law. In this research, the effect of judicial independence on Gross Domestic Production has been examined for 52 selected developed and developing countries during 2008-2015 using panel regression analysis. The findings show that judicial independence has a positive and significant effect on economic growth.