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La qualité du cadre juridique constitue-t-elle une barrière au commerce ?. Application aux économies en transition

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  • José De Sousa
  • Anne-Célia Disdier

Abstract

This paper investigates the influence of the legal framework quality on trade. Our sample includes trade flows between European countries over the period 1995-1999. During this period, transition economies of Central and Eastern Europe have attempted to set up market-oriented legal systems to replace the administered legal control of the old planned economy. In spite of large efforts, their legal framework remains relatively weak in terms of enforcement of contracts, compared to Western European countries. There are three main contributions. First, we show that the legal framework quality is a significant determinant of trade decisions. Second, despite risk differentials between exporters and importers, they perceive similarly the influence of the legal framework quality of their trading partner. Lastly, the legal framework quality explains a part of the home bias mentioned in the literature.Classification JEL : F12, F15, P20

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Bibliographic Info

Article provided by Presses de Sciences-Po in its journal Revue économique.

Volume (Year): 57 (2006)
Issue (Month): 1 ()
Pages: 135-149

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Handle: RePEc:cai:recosp:reco_571_0135

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  1. Simon Johnson & John McMillan & Christopher Woodruff, 2001. "Courts and Relational Contracts," NBER Working Papers 8572, National Bureau of Economic Research, Inc.
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Cited by:
  1. FE, Doukouré Charles, 2011. "Qualité des Institutions et Commerce International: Évidence à Partir des Exportations de l'UEMOA
    [Institutions Quality and International Trade: Evidence from WAEMU Exports]
    ," MPRA Paper 33333, University Library of Munich, Germany.

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