Economics at your fingertips  

Determinants of Development of the Mutual Fund Industry. A Socio-Cultural Approach

Ingrid Dragota (), Delia Tatu-Cornea and Narcis Tulbure

Prague Economic Papers, 2016, vol. 2016, issue 4, 476-493

Abstract: The mutual fund industry has grown considerably in many countries since the 1990s. Its evolution has been explained primarily in terms of its economic and financial determinants. We draw on a dynamic set of measures for socio-cultural values to explain the differential development of mutual funds across the world. Using a sample of 38 countries for the period 1996-2009, we find a positive relation between the perception of happiness and the size of the mutual fund industry. Freedom of choice, a feature of countries that are dominated by individualistic behaviours and values, has a positive impact on the development of the industry. We also explain the positive relation between individuals' preference for private ownership and the development of mutual funds. Moreover, we prove that the industry is larger in developed countries with greater stock market liquidity, with low ratios of remittance inflows to GDP, and in which the industry is older.

Keywords: socio-cultural values; mutual funds; financial development (search for similar items in EconPapers)
JEL-codes: A13 G23 Z13 (search for similar items in EconPapers)
Date: 2016
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (text/html) (application/pdf)
free of charge

Related works:
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:

Ordering information: This journal article can be ordered from
Editorial office Prague Economic Papers, University of Economics, nám. W. Churchilla 4, 130 67 Praha 3, Czech Republic

DOI: 10.18267/j.pep.572

Access Statistics for this article

Prague Economic Papers is currently edited by Klára Pavlová

More articles in Prague Economic Papers from University of Economics, Prague Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().

Page updated 2020-06-12
Handle: RePEc:prg:jnlpep:v:2016:y:2016:i:4:id:572:p:476-493