The Influence of Geographical Rotation of Judges in China on Regional Judicial Quality and Enterprise Labor Division:A Study Based on Empirical Evidence
Utilizing the 2008 change in presidency of the High Court as a form of quasi-natural experiment,this research examines how enhancements in regional ju-dicial quality can impact the professional division of labor in businesses.The differ-ential method is utilized to empirically evaluate the influence and process of these improvements.The enhancement of regional judicial quality has been discovered to significantly elevate the level of enterprise specialization.This finding remains con-sistent even when taking into endogeneity consideration and a set of robustness as-sessments.Further analysis of the mechanism illustrates that reducing the external transaction expenses encountered by businesses is the primary means through which regional judicial quality promotes enterprise specialization.Improved regional judi-cial quality significantly affects smaller businesses specializing in areas with lower internal control costs,industry sectors with intense competition,and economically progressive regions with significant government intervention.Additional study shows that increasing regional judicial quality also promotes overall productivity and busi-ness growth.
Regional Judicial QualitySpecialized Division of LaborGeo-graphicalRotation of Judges in China
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