Economic Analysis Of Private International Law

Private international law comes into being and develops with the needs of internationally civil association, whose mission is to resolve substantial benefit conflicts about related countries. Legislation and judicial systems about international civil cases are included in private international law theory study. Therefore, target to save cost and improve efficiency in legislation and actual judicial practice is also ought to be considered by private international law theory. Economic analysis methods are able to explain what is cost and efficiency, and provide concrete cost account method and the standard for efficient allocation of resources. Economic analysis is necessary for private international law theory whose target is to save cost and improve efficiency.The analysis methods provided by various economics theories are tools used by economic analysis. The related theories being able to provide economic analysis method include cost and revenue theory, supply and demand theory, competition theory, game theory and public choice theory etc. In this paper, rules on international civil jurisdiction will be analyzed by cost and revenue theory and supply and demand theory, conflict rules will be analyzed by cost and revenue theory and competition theory, and uniform substantive law will be analyzed by cost and revenue theory and game theory.The research range of this paper is consistent with the composed range of private international law. The private international law composed rules mainly include the conflict rules, uniform substantive law, rules on international civil jurisdiction and rules stipulating civil legal status of foreigners. The economic analysis of conflict rules, uniform substantive law, rules on international civil jurisdiction and rules stipulating standard civil legal status of foreigner composed the research range of this paper. The purpose of this paper is to improve and perfect the economic analysis of private international law, and make up the deficiency that exists in the economic analysis of private international law at present.This paper consists eight parts, they are: forwards, international civil jurisdiction and recognition and enforcement of judgments from foreign forum, the conflict rules, the principle of autonomy of the parties, uniform substantive law and rules giving a foreigner several kinds of main legal system on civil status and conclusion.The author applies cost and revenue analysis and supply and demand theory to analyze and explain the principle of ascertaining jurisdiction and the adjusted measure carried out by court. The economic rationality of the principle of ascertaining jurisdiction set up on a defendant's domicile disappears gradually. The possibility of minimizing common litigation cost that the forum in the defendant's domicile could realize decades, the cost saved by defendant probably has been counteracted by the litigation cost that the plaintiff pays much. The result of cost and revenue analysis is the most critical factor to ascertain international civil jurisdiction. The court can decide to what rules should be adopted and whether to delay period of litigation and admit a defendant to put forward objection to jurisdiction according to cost and revenue analysis. As supply and demand theory says, a national court will increase the supply quantity of judicial service when demand exceeds supply, and decrease the service quantity when supply exceeds demand. Game theory and public choice theory has testified that one national court will recognize and carry out judgment from another foreign court when its social revenue exceeds its cost.Baxter, Posner and Whincop have developed methods of analyzing private international law. They have attempted comparative analysis, regulatory analysis and policy and pragmatism analysis method respectively. These analysis methods can be applied to ascertain and testify conflict rules inside some concrete international civil fields. According to policy and pragmatism theory, the contract getting involved in implies the parties agreed on rule choice. The rule chosen by parties can save trade cost for the parties to choose rule and coordinating cost, to do that is consistent with the policy in the civil laws. There is always special policy in the closest field with person. In this way, only the conflict rules adopting fixed the connecting point can embody the policy of the entity rules. Therefore, the rule chosen by parties should be applied in such field as international contract, foreign tort or foreign property relation between husband and wife. The conflict rules adopting connecting point with special policy should be applied in such a filed as foreign family and succession affairs.Economic analysis has testified the principle of autonomy of the parties will still be the first law application principle in the field of international contract. The dilation of this principle in other fields and its restriction by different national legislation and international treaties exists side by side. From economic point of view, the strongest place, the connecting point used by the principle of the strongest connection, could be ascertained by integration of quality and quantity standard. When quantity standard is used, the law of the strongest place can minimize trade cost and litigation cost. When quality standard is used the law of the strongest place can make relevant resources be effectively allocated.Uniform substantive law is embodied by pertinent international treaties, thus the economic analysis of uniform substantive law can not break away from related international treaties. From the point of international community, uniform substantive law functions as civil substantive law in relevant international civil field. There are some differences between uniform substantive law and domestic civil law. Economic analysis has testified their economic function.The author has found the reason why national treatment or the reciprocal treatment is always adopted in international treaties through game theory analysis.There are two creative achievements in this paper. One is economic analysis of uniform substantive law; the other is economic analysis of main legal system on foreigner's civil status. The developed consideration based on current theory are economic analysis of the principle of autonomy of the parties and tendency of conflict rules, how to ascertain law application principle in some concrete fields, and definition of international civil jurisdiction by applying economic analysis.Economic analysis has testified private international law can make optimal contracting, minimize the social cost of litigation and facilitate international coordination. The function above is not only summary of current system of private international law, also direction to perfect private international law system in every country at the same time.Economy analysis method is one of the methods that are used in law theory studies. We should apply various methods to study relevant legal system in order to get a completely deep research.