Title

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

Document Type

Journal article

Source Publication

Journal of Comparative Economics

Publication Date

6-1-2010

Volume

38

Issue

2

First Page

146

Last Page

159

Keywords

Contract intensity, Institutions, International trade

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.

DOI

10.1016/j.jce.2009.09.002

Print ISSN

01475967

E-ISSN

10957227

Publisher Statement

Copyright © 2009 Association for Comparative Economic Studies Published by Elsevier Inc.

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Recommended Citation

Ma, Y., Qu, B., & Zhang, Y. (2010). Judicial quality, contract intensity and trade: Firm-level evidence from developing and transition countries. Journal of Comparative Economics, 38(2), 146-159. doi: 10.1016/j.jce.2009.09.002