Courts and Relational Contracts / Simon Johnson, John McMillan, Christopher Woodruff.

Format:

Book

Author/Creator:

Johnson, Simon.

Contributor:

National Bureau of Economic Research.

McMillan, John.

Woodruff, Christopher.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8572.

NBER working paper series no. w8572

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2001.

Summary:

Post-communist countries offer new evidence on the relative importance of courts and relationships in enforcing contracts. Belief in the effectiveness of courts has a significant positive effect on the level of trust shown in new relationships between firms and their customers. Well-functioning courts also encourage entrepreneurs to try out new suppliers. Courts are particularly important when specific investments are needed for a relationship to develop. While relationships can sustain existing interactions, workable courts help new interactions to start and develop.

Notes:

Print version record

October 2001.