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Convergence of financial systems: towards an evolutionary perspective

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  • H LZL, WERNER

Abstract

This paper provides an evolutionary perspective on financial systems based on complex systems theory. This perspective is used to organize the discussion about the convergence and non-convergence of financial systems. Based on a notion of financial systems as configuration of complementary elements, it is suggested that the convergence of financial systems is best conceptualized as a path-dependent process of institutional change and innovation. The implication of the evolutionary perspective on the dynamics of financial systems is that neither convergence theories using a simple evolutionary argument of survival of the fittest nor divergence theories related to strong complementarities can provide much guidance for analyzing institutional transformations of financial systems.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Journal of Institutional Economics.

Volume (Year): 2 (2006)
Issue (Month): 01 (April)
Pages: 67-90

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Handle: RePEc:cup:jinsec:v:2:y:2006:i:01:p:67-90_00

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Cited by:
  1. James Weber & David Wasieleski, 2013. "Corporate Ethics and Compliance Programs: A Report, Analysis and Critique," Journal of Business Ethics, Springer, vol. 112(4), pages 609-626, February.
  2. Nedelchev, Miroslav, 2012. "Корпоративно Управление На Финансови Посредници: Конвергенция И Дивергенция
    [Corporate Governance Of Financial Intermediaries: Con
    ," MPRA Paper 52268, University Library of Munich, Germany.
  3. Asongu Simplice, 2012. "African Stock Market Performance Dynamics: A Multidimensional Convergence Assessment," Working Papers 12/004, African Governance and Development Institute..
  4. Jackie Krafft & Yiping Qu & Francesco Quatraro & Jacques-Laurent Ravix, 2013. "Corporate governance, value and performance of firms: New empirical results on convergence from a large international database," Post-Print hal-00786664, HAL.
  5. Bruno, Giuseppe & De Bonis, Riccardo & Silvestrini, Andrea, 2012. "Do financial systems converge? New evidence from financial assets in OECD countries," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 141-155.
  6. Valérie Revest & Alessandro Sapio, 2012. "Financing technology-based small firms in Europe: what do we know?," Small Business Economics, Springer, vol. 39(1), pages 179-205, July.
  7. Nedelchev, Miroslav, 2012. "Corporate governance of financial intermediaries: convergence and divergence," MPRA Paper 53939, University Library of Munich, Germany.
  8. Giofré, Maela, 2013. "Investor protection rights and foreign investment," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 506-526.
  9. Simplice A, Asongu, 2012. "African Financial Development Dynamics: Big Time Convergence," MPRA Paper 36053, University Library of Munich, Germany.
  10. repec:hal:wpaper:hal-00786664 is not listed on IDEAS

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