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Court fairness and firm level export decisions

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  • Kapri, Kul

Abstract

This paper is the first micro-level study in the international trade literature to examine the causal relationship between court fairness and the firm-level export decisions (propensity and intensity). The paper uses firm-level data from South Asian countries collected and maintained by the World Bank for empirical analysis. Methodologically, the study uses IVprobit and 2SLS models to analyze the pooled cross-sectional data. I estimate various specifications to show that court fairness increases the export share as well as the likelihood that a firm becomes an exporter. Results are robust for both intensive and extensive margins of trade.

Suggested Citation

  • Kapri, Kul, 2021. "Court fairness and firm level export decisions," International Review of Economics & Finance, Elsevier, vol. 75(C), pages 269-277.
    • Handle: RePEc:eee:reveco:v:75:y:2021:i:c:p:269-277
    DOI: 10.1016/j.iref.2021.04.016
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    1. Shadrack Muthami Mwatu, 2022. "Institutions and export performance: firm level evidence from Kenya," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 487-506, December.

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    More about this item

    Keywords

    Court fairness; Exports; IVprobit; 2SLS; South Asia; World Bank;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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