Contract Enforcement Efficiency And Comparative Advantage

The study on the micro-mechanism that incomplete contracts affect comparative advantage shows that those countries or regions which have a higher contract enforcement efficiency have a comparative advantage on a higher-complexity industrial.Based on it,we use the data containing 28 provinces and 25 industrials to take an empirical analysis and prove that contract enforcement efficiency have an remarkable effect on export comparative advantage,under the same condition,and a higher-complexity industrial have a huger export.After taking into account the endogeneity of contract enforcement efficiency,the study results using instrumental variables remain robust after controlling other variables.Furthermore,we also test the impact of contract enforcement efficiency on asset-specific industrials and conclude that it has a comparative advantage over the export of asset-specific industrials.However,it has no effect on human-specific industrials.Therefore,improving regional contract enforcement efficiency is conducive to export and coordinated development of the regions.