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Global sourcing patterns, domestic institutions, and commercial arbitration environments

Author

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  • Se Mi Park

    (University of Maryland, Baltimore County)

Abstract

This paper empirically examines how the quality of national arbitration institutions affects global sourcing patterns of intermediate inputs. Higher-quality arbitration institutions provide better enforcement of an arbitral award and easier access to commercial arbitration. I find that global sourcing shrinks when transactions are more dependent on relationships between traders. This negative impact is better mitigated when each source and destination country's arbitration institutions are of higher quality.

Suggested Citation

  • Se Mi Park, 2025. "Global sourcing patterns, domestic institutions, and commercial arbitration environments," Economics Bulletin, AccessEcon, vol. 45(1), pages 495-506.
    • Handle: RePEc:ebl:ecbull:eb-25-00113
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    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I1-P44.pdf
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    More about this item

    Keywords

    Global sourcing; Commercial arbitration; Arbitration institutions; Relationship-specific transactions;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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