The Role of Rule of Law in Enhancing Economic Growth through Effective Social Justice and Regulatory Frameworks

Abstract

There is no doubt that rule of law is a primate characteristic of every nation and has been hailed as a pillar of democracy, socio-economic development and even social justice. This research paper investigates the various interactions which exists or can be said to exist between the rule of law and the economic growth of Pakistan, especially with respect to its current corrupt, politically unstable and legally ill-equipped society. The study uses a mixed-method strategy which involved a qualitative and quantitative method to determine the relationship between the legal framework, its enforcement relevant institutions and the milieu of the economy. The qualitative portion of the research involved interviews between legal practitioners, economists and policymakers, and this made it possible to identify some barriers to effective law enforcement and its implications toward stimulating economic activities. Under quantitative research, a correlation research design was employed while making use of the secondary data from the World Bank index and the transparency international through correlation matrices to find out the relationship between rule of law and other important parameters of the economy like the GDP growth, FDI inflow and the GCI.