How Do Financial Systems Affect Economic Performance?
Colin Mayer and
Wendy Carlin ()
No 1999-FE-08, Economics Series Working Papers from University of Oxford, Department of Economics
Abstract:
This paper examines the relation between financial, corporate and legal systems, and economic performance in different countries. It reviews international comparisons that undertake detailed analyses of individual, developed countries and studies that use large, cross-country data banks, including developing countries. While the former do not provide evidence of a clear relation between different types of systems and economic performance, the latter report a strong association of financial development with economic growth. A recent theoretical literature offers a way of reconciling these two sets of studies. It points to a relation between financial/ corporate systems and types of activity with some systems favouring high risk, short-term investments and others promoting long-term, relatively low risk investments. These theories also suggest that systems may be related to stages of economic development. The paper summarizes a first empirical study that reports an association between financial/corporate systems, types of activity and stages of economic development. The paper concludes that these relationships have important implications for the design of regulation and legal systems in different countries.
Keywords: financial systems; corporate control; growth; investment (search for similar items in EconPapers)
JEL-codes: E2 G3 O4 (search for similar items in EconPapers)
Date: 1999-07-01
References: Add references at CitEc
Citations: View citations in EconPapers (10)
Downloads: (external link)
https://ora.ox.ac.uk/objects/uuid:faa3f0b8-57b1-4f30-9dd9-142c0996d389 (text/html)
Related works:
Working Paper: How Do Financial Systems Affect Economic Performance? (1999) 
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:oxf:wpaper:1999-fe-08
Access Statistics for this paper
More papers in Economics Series Working Papers from University of Oxford, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Anne Pouliquen ( this e-mail address is bad, please contact ).