Over the last decades, at a European level, efforts have been made so that regions become capable of sustainable economic growth, with great social cohesion and better distribution of wealth, while at the same time under open market conditions, they are being exposed to external competitiveness....

In this paper, we study how contract enforcement at the local level affects a firm's ability to supply customised intermediate inputs to foreign firms. Using Italian firm-level data, we show that firms located in courts with higher judicial trial length in civil disputes, which is our measure of...