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Does property rights protection affect export quality? Evidence from a property law enactment

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  • Li, Guangzhong
  • Li, Jie
  • Zheng, Ying
  • Egger, Peter H.

Abstract

Property-rights protection is important for a host of aspects. This paper explicitly examines its effect on export quality, using the 2007 property law enactment in China as a natural experiment. We find that a firm's export quality increases after the law enactment, and the positive effect is more pronounced for non-state-owned private firms and foreign-investor-controlled firms, for firms specializing in trade with middle- and low-income countries, and for firms located in regions with better legal and other institutional environment. Overall, these results suggest that property-rights protection strengthens a country's international competitiveness through improving its export quality.

Suggested Citation

  • Li, Guangzhong & Li, Jie & Zheng, Ying & Egger, Peter H., 2021. "Does property rights protection affect export quality? Evidence from a property law enactment," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 811-832.
    • Handle: RePEc:eee:jeborg:v:183:y:2021:i:c:p:811-832
    DOI: 10.1016/j.jebo.2020.10.023
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    More about this item

    Keywords

    Property-rights protection; Product quality; Trade; China;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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