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Management International Review

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01.06.2013 | Research Article

The Quality of Domestic Legal Institutions and Export Performance

Theory and Evidence from China

verfasst von: Assoc. Prof. Jing Li, Prof. Ilan Vertinsky, Asst. Prof. Hua Zhang

Erschienen in: Management International Review | Ausgabe 3/2013

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Abstract

Does the quality of domestic legal institutions matter for export performance? How does differential access to protections and privileges offered by informal institutions moderate the relationship between the quality of formal legal institutions and export performance? To answer these questions, we develop a theoretical framework drawing on insights from trade theory and institutional theory.
We propose that higher-quality legal systems in an exporter’s location are associated with higher export performance, particularly when trade partners face higher levels of external and internal uncertainty. We further propose that firms that have less access to local informal institutions to reduce transaction costs and opportunism benefit more from better-developed legal institutions.
Using information for more than 198,000 firms and legal quality information for 120 cities in China, we find strong support for our predictions. We discuss our contributions to the literature on institutions and export.

Vorheriger Artikel Foreigness-induced Cognitive Disorientation

Nächster Artikel Effective Persuasion of International Business Sales Letters

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Titel: The Quality of Domestic Legal Institutions and Export Performance
Theory and Evidence from China
verfasst von: Assoc. Prof. Jing Li
Prof. Ilan Vertinsky
Asst. Prof. Hua Zhang
Publikationsdatum: 01.06.2013
Verlag: Springer-Verlag
Erschienen in: Management International Review / Ausgabe 3/2013
Print ISSN: 0938-8249
Elektronische ISSN: 1861-8901
DOI: https://doi.org/10.1007/s11575-012-0146-z

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