An increasingly popular view holds that institutionsin particular the rule of laware the keys to unlocking the developing worldampaposs full growth potential. But what exactly does this mean Which legal institutions matter and why How can policymakers use this knowledge to promote growth In The LawGrowth Nexus Kenneth Dam brings five decades of experience as a legal scholar and policymaker to bear upon these questions. After reviewing the burgeoning literature on legal institutions and economic development Dam unpacks the rule of law concept. Successive chapters analyze enforcement contracts and property rightsamp151the three concepts that collectively define rule of lawamp151and examine their roles in the real estate and financial sectors. Dam uses an extended analysis of China to assess the importance of the rule of law. This case study illustrates several of the bookampaposs central themes including the difficulty of building a strong independent judiciary and firstclass financial sector. The stark fact is that many parts of what we call the developing world have stopped developing while other regions have seen a slowdown in oncepromising growth. Could new or better legal institutions help jumpstart these economies In exploring this question Th e LawGrowth Nexus goes beyond regression results to examine the underlying mechanisms through which the law the judiciary and the legal profession influence the economy. The result is essential reading for analysts and policymakers facing the challenges of legal and economic reform.