A commonly held but untested view is that the use of modern technology such as computers could be endogenous to labor regulations. This paper confirms this view using the Enterprise survey's data on 1948 retail stores in India.

Using data on firm perceptions of how helpful the government is for doing business, we find strong evidence for the theory of legal origins: common law fares better than civil law. Advantages of using firm perceptions are discussed in detail.

The present paper contributes to the literature on legal origins by showing that the ease with which information on rules and regulations is available to firms is much better in common law compared with civil law countries.