Judicial quality, contract intensity and trade: Firm-level evidence from developing and transition countries

Using firm-level data from 28 developing and transition countries, we investigate how judicial quality affects firm exports through relationship-specific investment. We find that a good legal system significantly increases exports among firms that use more customized goods as intermediate inputs. We...

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Veröffentlicht in:	Journal of Comparative Economics 2010-06, Vol.38 (2), p.146-159
Hauptverfasser:	Ma, Yue, Qu, Baozhi, Zhang, Yifan
Format:	Artikel
Sprache:	eng
Schlagworte:	Contract intensity Contract intensity Institutions International trade Contracts Developing countries Econometrics Exports Institutions International trade Judicial behaviour Property rights Transition economies
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description	Using firm-level data from 28 developing and transition countries, we investigate how judicial quality affects firm exports through relationship-specific investment. We find that a good legal system significantly increases exports among firms that use more customized goods as intermediate inputs. We control for potential reverse causality using propensity score matching. Our main results are robust to the use of different econometric methods.
doi_str_mv	10.1016/j.jce.2009.09.002
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subjects	Contract intensity Contract intensity Institutions International trade Contracts Developing countries Econometrics Exports Institutions International trade Judicial behaviour Property rights Transition economies
title	Judicial quality, contract intensity and trade: Firm-level evidence from developing and transition countries
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