The impact of regional law environment on export decision of firms

Science Research Management ›› 2014, Vol. 35 ›› Issue (6): 94-101.

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The impact of regional law environment on export decision of firms

Liu Zhiqiang^1,2

1. School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China;
2. School of Sciences, Beijing University of Civil Engineering and Architecture, Beijing 100044, China

Received:2013-11-20 Revised:2014-04-30 Online:2014-06-25 Published:2014-06-23

Abstract

Abstract: This paper establishes a study framework based on the analysis of the influence mechanism of regional law environment on firms' export decision,then analyses the effect of regional law environment on firms' export decision and tests the different effects for heterogeneous ownership types based on panel datasets and panel data fixed effects model. The research results show that regional law environment plays a significant role in promoting firms' exports through reducing product cost and the default risk of overseas procurement contract. In addition, the different contract spirits induced by ownership structure influence the impact of regional law environment on firms' export decision. For State-owned enterprises that have more close relationship with the regional legal system and lower contract spirits, the promoting effect is weaker; while for foreign-owned enterprises that have sound contract spirits, the promoting effect is stronger.

Key words: regional law environment, heterogeneous firm ownership, firms&rsquo, export decision

CLC Number:

F746.12

Liu Zhiqiang. The impact of regional law environment on export decision of firms[J]. Science Research Management, 2014, 35(6): 94-101.

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The impact of regional law environment on export decision of firms

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