This paper examines the understudied relationship between economic liberalization and litigation. Using a unique dataset of prefecture-level civil litigation data in Japan during the 1990s, we find that the entry of foreign firms leads to higher litigation rates net of other factors. Abstract and download

Topics: Japan, Foreign Direct Investment, Dispute resolution

Liberalization has allowed greater foreign entry into Japan. We demonstrate that the litigious behavior of foreign firms has led Japanese firms to also become more litigious. Abstract and download

Topics: Japan, Litigation, Institutions, Foreign Direct Investment