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Which mechanisms support the fulfillment of sales agreements? Asking decision-makers in firm

Author

Listed:
  • Kathryn Hendley

    () (University of Wisconsin-Madison)

  • Peter Murrell

    () (Department of Economics, University of Maryland)

Abstract

The paper proposes a methodology to obtain evidence on the relative importance of different mechanisms for supporting agreements. A survey question posed to company directors summarizes key aspects of mechanisms and asks for judgments on use. In contrast to existing approaches, the data covers the full complement of mechanisms and much economic activity, offering aggregate numerical judgments. The methodology is applied in Romania. Popular hypotheses are examined. Bilateralism is numerically dominant; the legal system is used extensively; third-party mechanisms are less important. These three mechanisms are non-complementary.

Suggested Citation

  • Kathryn Hendley & Peter Murrell, 2003. "Which mechanisms support the fulfillment of sales agreements? Asking decision-makers in firm," Electronic Working Papers 03-002, University of Maryland, Department of Economics.
  • Handle: RePEc:umd:umdeco:03-002
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    References listed on IDEAS

    as
    1. Fafchamps, Marcel, 1996. "The enforcement of commercial contracts in Ghana," World Development, Elsevier, vol. 24(3), pages 427-448, March.
    2. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    3. Alan S. Blinder, 1994. "On Sticky Prices: Academic Theories Meet the Real World," NBER Chapters,in: Monetary Policy, pages 117-154 National Bureau of Economic Research, Inc.
    4. Arrighetti, Alessandro & Bachmann, Reinhard & Deakin, Simon, 1997. "Contract Law, Social Norms and Inter-firm Cooperation," Cambridge Journal of Economics, Oxford University Press, vol. 21(2), pages 171-195, March.
    5. Simon Johnson & John McMillan, 2002. "Courts and Relational Contracts," Journal of Law, Economics, and Organization, Oxford University Press, vol. 18(1), pages 221-277, April.
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    Citations

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    Cited by:

    1. World Bank, 2005. "El Salvador : Investment Climate Assessment, Volume 1, Main Findings and Policy Recommendations," World Bank Other Operational Studies 8673, The World Bank.
    2. Pyle, William, 2006. "Resolutions, recoveries and relationships: The evolution of payment disputes in Central and Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 317-337, June.
    3. World Bank, 2005. "El Salvador : Investment Climate Assessment, Volume 2, Detailed Findings and Recommendations," World Bank Other Operational Studies 8670, The World Bank.
    4. Harry G. Broadman & James Anderson & Constantijn A. Claessens & Randi Ryterman & Stefka Slavova & Maria Vagliasindi & Gallina A. Vincelette, 2004. "Buildings Market Institutions in South Eastern Europe : Comparative Prospects for Investment and Private Sector Development," World Bank Publications, The World Bank, number 14947.
    5. World Bank, 2007. "Chile : Investment Climate Assessment, Volume 2. Background Chapters," World Bank Other Operational Studies 7716, The World Bank.
    6. Murrell, Peter, 2003. "Firms facing new institutions: transactional governance in Romania," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 695-714, December.
    7. Steer, Liesbet & Sen, Kunal, 2010. "Formal and Informal Institutions in a Transition Economy: The Case of Vietnam," World Development, Elsevier, vol. 38(11), pages 1603-1615, November.
    8. Amirah El-Haddad, 2008. "Vertical Integration and Institutional Constraints on Firm Behavior: The Case of the Garment Industry in Egypt," Working Papers 383, Economic Research Forum, revised 01 Jan 2008.
    9. Svetlana Avdasheva & Nadezhda Goreyko, 2010. "Governance Structures in Russian manufacturing: assessment using sample survey data," UCL SSEES Economics and Business working paper series 112, UCL School of Slavonic and East European Studies (SSEES).
    10. El-Haddad, Amirah, 2008. "Dispute resolution mechanisms in the Egyptian garment industry," Economics Letters, Elsevier, vol. 99(3), pages 425-430, June.
    11. World Bank, 2007. "Costa Rica : Investment Climate Assessment," World Bank Other Operational Studies 7691, The World Bank.
    12. William Pyle, 2005. "Collective Action and Post-Communist Enterprise: The Economic Logic of Russia’s Business Associations," Middlebury College Working Paper Series 0521, Middlebury College, Department of Economics.
    13. repec:ksa:szemle:1740 is not listed on IDEAS

    More about this item

    Keywords

    Law; transactions; private ordering; law; networks; transition; Romania;

    JEL classification:

    • K0 - Law and Economics - - General
    • P2 - Economic Systems - - Socialist Systems and Transition Economies

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