Risks against economic fluctuations with the rule of law
June 20, 2022 09:40 Source: "Chinese Social Sciences" June 20, 2022, No. 2430, Issue 2430

Comprehensive foreign media reports based on one of the latest research,Countries that do the rule of law,Low economic volatility。

According to the official website of the University of Texas University Austin, recently reported,The article "Self -Implementation Contracts and Depends", a professor of the Department of Finance at the School of Business, the School of Finance, the School bet365 Play online games of Business School, published in "Monetary Economics Journal", a subsidiary of Ais Wei Publishing Company in the Netherlands 2022 5. Moon number。Fox and others established a model based on game theory,The premise of this model is that the productivity will be affected after the impact of the enterprise; the implementation of the legal contract is related to the legal environment。When the implementation of the contract is lacking in strong supervision,It is easier for people to breach; if the breach of the contract is an enterprise operator,Labor relationship will be destroyed。

bet365 live casino games Researchers use this model to compare the two theoretical economic environments: good rule of law and weak rule of law,The consequences of the overall economic and corporate impact are examined。Analysis results show,A country with a weak rule of law,Strong economic volatility,The productivity gap between different enterprises is also large。Due to the weak foundation of the rule of law in these countries,Employers are more likely to not perform labor contracts during the economic turmoil,Employees reduce the workload because it is difficult to protect their rights Bet365 app download and interests; from this,Corporate productivity decrease,The impact expands to the entire economic system。

Fox and others said,This discovery has reference significance for enterprises and governments。In a country with a low level of rule of law,Commercial trust and relations contract is particularly important。Commercial institutions need to increase their efforts to build trust before the economic impact.,Empowerment to employees,Make them dare to resist the breach of contract。This can also enhance the credibility of the company。

(Wang Youran/Compilation)

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