How Important is State Enforcement for Trade?

Posted: 12 Dec 2005

See all articles by Peter T. Leeson

Peter T. Leeson

George Mason University - Department of Economics; George Mason University - Mercatus Center

Abstract

This paper investigates the effect of state contract enforcement on international trade. I estimate a gravity model of bilateral trade using panel data that covers 157 countries over the last 50 years. I find that state enforcement increases trade between nations - but less impressively than its status as essential for flourishing trade suggests. My analysis provides the first direct evidence of state enforcement's impact on trade in general and international trade in particular.

Suggested Citation

Leeson, Peter T., How Important is State Enforcement for Trade?. American Law and Economics Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=869144

Peter T. Leeson (Contact Author)

George Mason University - Department of Economics ( email )

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HOME PAGE: http://www.peterleeson.com

George Mason University - Mercatus Center ( email )

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HOME PAGE: http://ppe.mercatus.org/scholars/peter-leeson

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