Court fairness and firm level export decisions

Kul Kapri

International Review of Economics & Finance, 2021, vol. 75, issue C, 269-277

Abstract: This paper is the first micro-level study in the international trade literature to examine the causal relationship between court fairness and the firm-level export decisions (propensity and intensity). The paper uses firm-level data from South Asian countries collected and maintained by the World Bank for empirical analysis. Methodologically, the study uses IVprobit and 2SLS models to analyze the pooled cross-sectional data. I estimate various specifications to show that court fairness increases the export share as well as the likelihood that a firm becomes an exporter. Results are robust for both intensive and extensive margins of trade.

Keywords: Court fairness; Exports; IVprobit; 2SLS; South Asia; World Bank (search for similar items in EconPapers)
JEL-codes: D22 F10 F14 L25 O43 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:75:y:2021:i:c:p:269-277

DOI: 10.1016/j.iref.2021.04.016

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