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

Guangzhong Li, Jie Li, Ying Zheng and Peter Egger ()

Journal of Economic Behavior & Organization, 2021, vol. 183, issue C, 811-832

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.

Keywords: Property-rights protection; Product quality; Trade; China (search for similar items in EconPapers)
JEL-codes: F16 G34 K31 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.jebo.2020.10.023

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Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

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Handle: RePEc:eee:jeborg:v:183:y:2021:i:c:p:811-832