Global sourcing patterns, domestic institutions, and commercial arbitration environments

Links to Files

https://ideas.repec.org//a/ebl/ecbull/eb-25-00113.html

Permanent Link

http://hdl.handle.net/11603/39080

Collections

UMBC Economics Department
UMBC Faculty Collection

Author/Creator

Author/Creator ORCID

https://orcid.org/0000-0002-8639-8819

Date

2025-03-30

Type of Work

journal articles
Text

Department

Program

Citation of Original Publication

Park, Se Mi. “Global Sourcing Patterns, Domestic Institutions, and Commercial Arbitration Environments.” Economics Bulletin 45, no. 1 (2025): 495–506. https://ideas.repec.org//a/ebl/ecbull/eb-25-00113.html

Rights

This item is likely protected under Title 17 of the U.S. Copyright Law. Unless on a Creative Commons license, for uses protected by Copyright Law, contact the copyright holder or the author.

Subjects

Global sourcing
Arbitration institutions
Relationship-specific transactions
Commercial arbitration

Abstract

This paper empirically examines how the quality of national arbitration institutions affects global sourcing patterns of intermediate inputs. Higher-quality arbitration institutions provide better enforcement of an arbitral award and easier access to commercial arbitration. I find that global sourcing shrinks when transactions are more dependent on relationships between traders. This negative impact is better mitigated when each source and destination country's arbitration institutions are of higher quality.