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)Researchpeer-review

23 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

Fingerprint

Transition countries
Developing countries
Intermediate inputs
Causality
Propensity score matching
Econometric methods
Relationship-specific investments
Legal system
Firm-level data

Keywords

  • Contract intensity
  • Institutions
  • International trade

Cite this

@article{faff77529adc4e0f88c642e4453177b0,
title = "Judicial quality, contract intensity and trade : firm-level evidence from developing and transition countries",
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.",
keywords = "Contract intensity, Institutions, International trade",
author = "Yue MA and Baozhi QU and Yifan ZHANG",
year = "2010",
month = "6",
day = "1",
doi = "10.1016/j.jce.2009.09.002",
language = "English",
volume = "38",
pages = "146--159",
journal = "Journal of Comparative Economics",
issn = "0147-5967",
publisher = "Academic Press Inc.",
number = "2",

}

Judicial quality, contract intensity and trade : firm-level evidence from developing and transition countries. / MA, Yue; QU, Baozhi; ZHANG, Yifan.

In: Journal of Comparative Economics, Vol. 38, No. 2, 01.06.2010, p. 146-159.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

TY - JOUR

T1 - Judicial quality, contract intensity and trade : firm-level evidence from developing and transition countries

AU - MA, Yue

AU - QU, Baozhi

AU - ZHANG, Yifan

PY - 2010/6/1

Y1 - 2010/6/1

N2 - 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.

AB - 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.

KW - Contract intensity

KW - Institutions

KW - International trade

UR - http://commons.ln.edu.hk/sw_master/364

U2 - 10.1016/j.jce.2009.09.002

DO - 10.1016/j.jce.2009.09.002

M3 - Journal Article (refereed)

VL - 38

SP - 146

EP - 159

JO - Journal of Comparative Economics

JF - Journal of Comparative Economics

SN - 0147-5967

IS - 2

ER -