Political Institutions and Financial Development: An Empirical Study

Yongfu Huang

World Development, 2010, vol. 38, issue 12, 1667-1677

Abstract: Summary This paper examines whether political institutional improvement promotes financial development, using a panel dataset of 90 developed and developing countries over 1960-99. The empirical evidence reveals a positive effect of institutional improvement on financial development at least in the short-run, particularly for lower income countries. The preliminary evidence by a before-after event study indicates that a democratic transformation is typically followed by an increase in financial development.

Keywords: political institutions; financial development; globalization; East Asia; Thailand (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (129)

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