Department of Economics and Business Economics

Judicial Quality, Input Customisation, and Trade Margins: The Role of Product Quality

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Standard

Judicial Quality, Input Customisation, and Trade Margins : The Role of Product Quality. / Cui, Xiaomin ; Yu, Miaojie; Zhang, Rui.

In: Economic Journal, Vol. 132, No. 643, 04.2022, p. 926-952.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Harvard

APA

CBE

MLA

Vancouver

Author

Cui, Xiaomin ; Yu, Miaojie ; Zhang, Rui. / Judicial Quality, Input Customisation, and Trade Margins : The Role of Product Quality. In: Economic Journal. 2022 ; Vol. 132, No. 643. pp. 926-952.

Bibtex

@article{f22ce556476942f8abb96a07515ffe06,
title = "Judicial Quality, Input Customisation, and Trade Margins: The Role of Product Quality",
abstract = "We study how the contracting environment affects the quality of trade. A better contracting environment not only induces specialisations in industries intensively using customised inputs, but also causes quality upgrading of domestic varieties and tougher competition in these industries. We incorporate these effects into a Ricardian model with customised input and product quality. Our model predicts that better judicial quality raises a country{\textquoteright}s import prices and quality more in contract-intensive products, but has no impacts on its export prices or quality. We empirically confirm these predictions, and find that rising judicial quality is associated with increasing specialisations in contract-intensive industries.",
keywords = "judicial quality, contracts, customised input, quality, trade margins",
author = "Xiaomin Cui and Miaojie Yu and Rui Zhang",
year = "2022",
month = apr,
doi = "10.1093/ej/ueab098",
language = "English",
volume = "132",
pages = "926--952",
journal = "Economic Journal",
issn = "0013-0133",
publisher = "Wiley",
number = "643",

}

RIS

TY - JOUR

T1 - Judicial Quality, Input Customisation, and Trade Margins

T2 - The Role of Product Quality

AU - Cui, Xiaomin

AU - Yu, Miaojie

AU - Zhang, Rui

PY - 2022/4

Y1 - 2022/4

N2 - We study how the contracting environment affects the quality of trade. A better contracting environment not only induces specialisations in industries intensively using customised inputs, but also causes quality upgrading of domestic varieties and tougher competition in these industries. We incorporate these effects into a Ricardian model with customised input and product quality. Our model predicts that better judicial quality raises a country’s import prices and quality more in contract-intensive products, but has no impacts on its export prices or quality. We empirically confirm these predictions, and find that rising judicial quality is associated with increasing specialisations in contract-intensive industries.

AB - We study how the contracting environment affects the quality of trade. A better contracting environment not only induces specialisations in industries intensively using customised inputs, but also causes quality upgrading of domestic varieties and tougher competition in these industries. We incorporate these effects into a Ricardian model with customised input and product quality. Our model predicts that better judicial quality raises a country’s import prices and quality more in contract-intensive products, but has no impacts on its export prices or quality. We empirically confirm these predictions, and find that rising judicial quality is associated with increasing specialisations in contract-intensive industries.

KW - judicial quality

KW - contracts

KW - customised input

KW - quality

KW - trade margins

U2 - 10.1093/ej/ueab098

DO - 10.1093/ej/ueab098

M3 - Journal article

VL - 132

SP - 926

EP - 952

JO - Economic Journal

JF - Economic Journal

SN - 0013-0133

IS - 643

ER -