What question did this study set out to answer?

This research aims to explore how judicial efficiency affects supply chain resilience, particularly through improved contract enforcement.

Judicial Efficiency, Contract Enforcement, and Supply Chain Resilience: Evidence From a Natural Policy Experiment

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Randomized trial examines judicial efficiency's impact on supply chain resilience in firms, indicating significant improvements.

This research aims to explore how judicial efficiency affects supply chain resilience, particularly through improved contract enforcement.
Implemented a difference-in-differences design using data from Chinese listed firms (2015-2021).
Exploited a court reform pilot improving civil trial efficiency in selected cities.
Analyzed the relationship between judicial efficiency and accounting-based indicators of supply chain resilience.
Improved judicial efficiency led to a significant increase in supply chain resilience (measured by accounting indicators).
The reform accelerated civil case resolution and promoted shifting sales to more efficient jurisdictions.
Stronger effects observed among firms reliant on relational contracting and those facing high economic policy uncertainty.

Chi et al. (2026) studied this question.

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