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
This paper is available as PDF (165 K) or via email.
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