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CIAO DATE: 2/5/2007
The Cost of Resolving Small Business Conflicts: The Case of Peru
Alvaro Herrero, Keith Henderson
October 2003
Abstract
The goal of this study is to analyze the impact of judicial inefficiency on small businesses in Peru. It is based on the hypothesis that chronic problems in the region’s judicial systems have negative consequences on the development of micro, small and medium-sized businesses. Our analysis focuses, first, on the relationship between Small and Medium Enterprises (SMEs) and the legal system. Secondly, it investigates the decisions made by SMEs to mitigate the effects of bad court performance. Lastly, it identifies several ways in which judicial inefficiency is transferred to the business sector. The analysis also attempts to quantify the economic impact of judicial inefficiency.
