EconPapers    
Economics at your fingertips  
 

Do Financial Sector Reforms Lead to Financial Development? Evidence from a New Dataset

Thierry Tressel () and Enrica Detragiache ()

No 08/265, IMF Working Papers from International Monetary Fund

Abstract: This paper studies whether the policies that, over the past decades, liberalized bankingsystems around the world have resulted in deeper credit markets. To measure banking sectorreforms we use a new index that tracks policy changes in five separate areas for 91 countriesover 1973-2005. We find that reforms have led to financial deepening, but only in countrieswith institutions that place checks and balances on political power. We interpret this asevidence of a complementarity between financial sector reforms and political institutions thatprotect property rights. Other country characteristics do not seem to significantly influencethe effect of banking reforms on financial development.

Keywords: Credit policy; Banking systems; Economic reforms; Economic models; Financial sector; Political economy; Financial development, financial liberalization, property rights, banking, banking reform, banking sector, banking reforms, financial reforms, (search for similar items in EconPapers)
Pages: 42
Date: 2008-12-01
New Economics Papers: this item is included in nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32) Track citations by RSS feed

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=22486 (application/pdf)

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: https://EconPapers.repec.org/RePEc:imf:imfwpa:08/265

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Jim Beardow ().

 
Page updated 2020-08-10
Handle: RePEc:imf:imfwpa:08/265