THE ECONOMIC FUNCTION OF CIVIL JUSTICE: THE RELATIONSHIP BETWEEN CIVIL LAW, CIVIL PROCESS, AND MARKET EFFICIENCY
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Abstract
The efficacy of civil justice is predicated on its role as the cornerstone of a market economy, yet it must be noted that it does not proffer a tangible mechanism for the protection of violated rights. Furthermore, it fosters the stability of economic circulation and establishes the prerequisites for predictable entrepreneurial activity. The accessibility and effectiveness of justice have been demonstrated to have a significant impact on the ability of businesses and citizens to realise their economic interests, attract capital, conclude contracts and develop innovations. Conversely, the inefficiency of the judicial system, the delay in proceedings, the inconsistency of decisions, and high procedural costs generate economic risks, market costs and increased economic growth, which leads to a decrease in investment attractiveness, an increase in conditions for entrepreneurship and an increase in the level of shadow economy. In contemporary conditions, especially for countries undergoing structural reforms or in the process of recovery, enhancing the efficiency of civil justice has become a strategic component of economic policy. This comprehensive study of the economic function of civil justice is necessary for the decision-making process aimed at modernising the judicial system, strengthening public trust and ensuring sustainable market development. The research methodology under scrutiny comprises a range of methods, including the comparative law method, the method of economic and legal analysis, the method of analysis, the empirical method and the inductive-deductive method. The article is devoted to the study of the economic function of civil justice and the analysis of the relationship between civil law, civil process and the efficiency of the market economy. The importance of a high-quality system for resolving private law disputes as an institutional basis for the development of entrepreneurship, the attraction of investments, the stability of the financial sector and the reduction of transaction costs is demonstrated. The findings of this study substantiate the hypothesis that predictability and solvency of court decisions, proper protection of property rights and effective fulfilment of obligations ensure the formation of confidence in economic growth. In this paper, it is proposed that civil justice should be considered a key element of market infrastructure, insofar as it determines the balance between private autonomy and state regulation.
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civil justice, economic efficiency, civil law, civil process, transaction costs, protection of property rights, market institutions, judicial system, economic development
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