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Does the strength of the legal systems matter for trade in insurance and financial services?

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  • Gani, Azmat
  • Clemes, Michael D.

Abstract

This paper investigates if the strength of the legal system impacts on the trade in insurance and financial services in the high-income OECD and developing countries. Our findings reveal a statistically significant positive correlation of rule of law and regulatory quality with the exports and imports of insurance and financial services. Our empirical findings also reveal a negative and statistically significant correlation of contract enforcement with the exports and imports of insurance and financial services. We conclude that strengthening the rule of law and contract enforcement mechanisms can facilitate higher levels of trade in insurance and financial services.

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  • Gani, Azmat & Clemes, Michael D., 2016. "Does the strength of the legal systems matter for trade in insurance and financial services?," Research in International Business and Finance, Elsevier, vol. 36(C), pages 511-519.
    • Handle: RePEc:eee:riibaf:v:36:y:2016:i:c:p:511-519
    DOI: 10.1016/j.ribaf.2015.10.008
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    More about this item

    Keywords

    Rule of law; Contract enforcement; Regulations; Trade; Insurance; Finance; Services;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • K2 - Law and Economics - - Regulation and Business Law
    • G2 - Financial Economics - - Financial Institutions and Services
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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