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Legal environment, contract intensity, and export quality

Author

Listed:
  • Li, Junqing
  • Liu, Kaifeng
  • Zhang, Jianbo

Abstract

In this paper, we construct a simple game-theoretic model to illustrate that improvement in the legal environment can improve the quality of final products by improving the quality of intermediate products, especially in industries with higher contract intensity. Using Chinese Customs Database and Industrial Enterprise Database from 2000 to 2006, we measure the export quality at the firm-product-country level and examine the effect of the legal environment on the export quality. Our empirical study shows that the improvement in the legal environment can raise export quality, especially at firms with higher contract intensity. Further studies show that the legal environment and contract intensity affect the import decision of firms and thus have a significant impact on product quality of export firms.

Suggested Citation

  • Li, Junqing & Liu, Kaifeng & Zhang, Jianbo, 2023. "Legal environment, contract intensity, and export quality," China Economic Review, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:chieco:v:79:y:2023:i:c:s1043951x23000615
    DOI: 10.1016/j.chieco.2023.101976
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    Citations

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    Cited by:

    1. Li, Junqing & Yang, Zhiyuan & Liu, Kaifeng, 2024. "Research on contracting institutions and convergence," China Economic Review, Elsevier, vol. 84(C).
    2. Lei Liu & Kai He & Yi Qiao & Peilin Fu & Qinggang Meng, 2023. "Entrepreneurship and Export Product Quality Improvement," Sustainability, MDPI, vol. 15(16), pages 1-20, August.
    3. Li, Taoying & Peng, Mengyin & Zhang, Jianjiang & Zheng, Long & Chen, Qiang, 2024. "Legal environment and natural resource dependence: The role of fintech and green innovation in China," Resources Policy, Elsevier, vol. 90(C).
    4. Angstmann, Marius & Gärtner, Stefan & Angstmann, Marius, 2023. "Abriss, Neubau oder Sanierung - CO2-Emissionen im Gebäudesektor: Nicht nur sparsamer, sondern auch weniger," Forschung Aktuell 09/2023, Institut Arbeit und Technik (IAT), Westfälische Hochschule, University of Applied Sciences.
    5. Sèna Kimm Gnangnon, 2024. "Export product quality and inclusivity in developing countries," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 32(3), pages 807-843, July.

    More about this item

    Keywords

    Contract intensity; Export product quality; Legal environment;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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