Legal Institutions and Financial Development
NBER Working Paper No. 10417
Why do some countries have growth-enhancing financial systems, while others do not? Why have some countries developed the necessary investor protection laws and contract-enforcement mechanisms to support financial institutions and markets, while others have not? This paper reviews existing research on the role of legal institutions in shaping financial development.
Published: Menard, Claude and Mary M. Shirley (eds.) Handbook for New Institutional Economics. Norwell MA: Kluwer Academic Publishers, 2005.This paper is a revision of the earlier NBER working paper w10126, Legal Institutions and Financial Development, Thorsten Beck, Ross Levine