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

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  • Ma, Yue
  • Qu, Baozhi
  • Zhang, Yifan

Abstract

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.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 38 (2010)
Issue (Month): 2 (June)
Pages: 146-159

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Handle: RePEc:eee:jcecon:v:38:y:2010:i:2:p:146-159

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Web page: http://www.elsevier.com/locate/inca/622864

Related research

Keywords: Contract intensity Institutions International trade;

References

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Citations

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Cited by:
  1. Alireza Naghavi & Julia Spies & Farid Toubal, 2013. "IPR, Product Complexity and the Organization of Multinational Firms," Working Papers 2013-31, CEPII research center.
  2. A. Naghavi & J. Spies & F. Toubal, 2011. "Intellectual Property Rights, Product Complexity, and the Organization of Multinational Firms," Working Papers wp773, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Zhang, Jianhua & Wang, Peng & Qu, Baozhi, 2012. "Bank risk taking, efficiency, and law enforcement: Evidence from Chinese city commercial banks," China Economic Review, Elsevier, vol. 23(2), pages 284-295.

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