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Grossman-Hart (1986) Goes Global: Incomplete Contracts, Property Rights, and the International Organization of Production

  • Pol Antràs

I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I also review empirical work suggestive of the empirical relevance of the property-rights theory. Along the way, I develop novel theoretical results and also outline some of the key limitations of existing contributions.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17470.

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Date of creation: Sep 2011
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Publication status: published as “Grossman-Hart (1986) Goes Global: Incomplete Contracts, Property Rights, and the International Organization of Production,” May 2012, forthcoming Journal of Law, Economics and Organization.
Handle: RePEc:nbr:nberwo:17470
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