NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Contractual Versus Non-Contractual Trade: The Role of Institutions in China

Robert C. Feenstra, Chang Hong, Hong Ma, Barbara J. Spencer

NBER Working Paper No. 17728
Issued in January 2012
NBER Program(s):   ITI

Recent research has demonstrated the importance of institutional quality at the country level for both the volume of trade and the ability to trade in differentiated goods that rely on contract enforcement. This paper takes advantage of cross-provincial variation in institutional quality in China, and export data that distinguishes between foreign and domestic exporters and processing versus ordinary trade, to show that institutional quality is a significant factor in determining Chinese provincial export patterns. Institutions matter more for processing trade, and more for foreign firms, just as we would expect from a greater reliance on contracts in these cases.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Information about Free Papers

You should expect a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w17728

Published: Feenstra, Robert C. & Hong, Chang & Ma, Hong & Spencer, Barbara J., 2013. "Contractual versus non-contractual trade: The role of institutions in China," Journal of Economic Behavior & Organization, Elsevier, vol. 94(C), pages 281-294. citation courtesy of

Users who downloaded this paper also downloaded these:
Feenstra, Ma, Neary, and Rao w17729 Who Shrunk China? Puzzles in the Measurement of Real GDP
Feenstra, Li, and Yu w16940 Exports and Credit Constraints Under Incomplete Information: Theory and Evidence from China
Li and Whalley w17826 China's Potential Future Growth and Gains from Trade Policy Bargaining: Some Numerical Simulation Results
Roberts, Xu, Fan, and Zhang w17725 A Structural Model of Demand, Cost, and Export Market Selection for Chinese Footwear Producers
Chi, Freeman, and Li w17721 Adjusting to Really Big Changes: The Labor Market in China, 1989-2009
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us