Judicial quality, contract intensity and trade : firm-level evidence from developing and transition countries

Yue MA, Baozhi QU, Yifan ZHANG

Research output: Journal PublicationsJournal Article (refereed)

27 Citations (Scopus)

Abstract

Using firm-level data from 28 developing and transition countries, we investigate how judicial quality affects firm exports through relationship-specific investment. We find that a good legal system significantly increases exports among firms that use more customized goods as intermediate inputs. We control for potential reverse causality using propensity score matching. Our main results are robust to the use of different econometric methods.
Original languageEnglish
Pages (from-to)146-159
Number of pages14
JournalJournal of Comparative Economics
Volume38
Issue number2
DOIs
Publication statusPublished - 1 Jun 2010

Keywords

  • Contract intensity
  • Institutions
  • International trade

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