EconPapers    
Economics at your fingertips  
 

Are modern financial systems shaped by state antiquity?

James Ang ()

Journal of Banking & Finance, 2013, vol. 37, issue 11, 4038-4058

Abstract: We demonstrate that existing differences in financial development between countries can be explained by the cumulative variations in their levels of state experience since 1AD. This dimension of early historical development has not been considered so far in studies that analyze the determinants of financial development. The estimation allows for all major theories established in the literature as possible explanations for the disparity of financial development across the globe. Significance of state antiquity is robust to the use of alternative indicators of financial development, the consideration of different lengths and periods of statehood, and controlling for a range of variables or country characteristics. Our results highlight the important role of statehood in propelling financial system development, and thus provide some support to the view that historically determined differences in the early-start developmental advantage provide the basis for explaining the fundamental sources of variations in financial development between countries today.

Keywords: State antiquity; Financial development; Institutions; Long-run comparative development (search for similar items in EconPapers)
JEL-codes: H70 O10 O40 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378426613002938
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Are modern financial systems shaped by state antiquity? (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:37:y:2013:i:11:p:4038-4058

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-04-14
Handle: RePEc:eee:jbfina:v:37:y:2013:i:11:p:4038-4058