| ID | 170095 |
| Title Proper | Does contracting institution affect the patterns of industrial specialization in China? |
| Language | ENG |
| Author | He, Qing |
| Summary / Abstract (Note) | This study evaluates the importance of contracting institutions as a source of comparative advantage across Chinese provinces. We find that industries differ in their reliance on relationship-specific investments. Provinces with better contracting institutions specialize in industries with more intensive relationship-specific investments. We implement two proxies to measure contracting institutions, including efficiency of the legal system and service of contract enforcement. The empirical results of this study indicate that contracting institutions play a role in shaping the patterns of industrial specialization. Specifically, the service of contract enforcement has the first-order effect on the patterns of industrial specialization in China; by contrast, legal jurisdiction plays a modest role. |
| `In' analytical Note | China Economic Review , No.54; Apr 2019: p.191-203 |
| Journal Source | China Economic Review 2019-04 |
| Key Words | China ; Contract Service ; Contracting Institution ; Legal Rule ; Industrial Specialization |