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This authoritative collection demonstrates the increasing application of the law and economics methodology to the problems of developing countries. At the foundation of this application is the institutional approach to economic development, which emphasises the success or failure of key institutions in facilitating development. The impact on future research will be far-reaching and is expected to dominate the debate on development issues for a long time to come. There has been an outpouring of literature, both theoretical and empirical, that examines various facets of development from an institutional perspective and emphasises the crucial role played by the legal system in the economic development of nations. The editors have drawn together a careful selection of the key papers for inclusion in this volume, which will be an invaluable reference for lawyers, economists and development practitioners.