Working Paper: NBER ID: w10417
Authors: Thorsten Beck; Ross Levine
Abstract: 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.
Keywords: No keywords provided
JEL Codes: K2; G18; O57
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Strong legal institutions (P37) | Enhanced financial markets (G19) |
| Type of legal tradition (K15) | Investor confidence and market efficiency (G14) |
| Rigidity in legal systems (K40) | Financial underdevelopment (O16) |
| Legal origins (K15) | Cross-country variations in financial development (F65) |