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Trade law and trade flows

Author

Listed:
  • Salvador Gil-Pareja

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)

  • Rafael Llorca-Vivero

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)

  • Jordi Paniagua

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)

Abstract

This paper performs a structural gravity estimation of the effect of commercial law conventions on international trade flows. We focus on trade law agreements aimed to privately resolve disputes among partners: international commercial arbitration, model law and conciliation. Our results suggest three interesting traits. First, international dispute resolution mechanisms have a moderate positive impact on trade, which is stronger for similar country-pairs in terms of income. Second, this effect is not observed in agreements which do not tackle private resolution mechanisms. Third, international commercial arbitration is the most effective tool to promote trade.

Suggested Citation

  • Salvador Gil-Pareja & Rafael Llorca-Vivero & Jordi Paniagua, 2018. "Trade law and trade flows," Working Papers 1804, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:1804
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    References listed on IDEAS

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    More about this item

    Keywords

    international trade law; international commercial arbitration; model law; conciliation; international trade; structural gravity;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

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