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Law, Finance, and Growth during Transition: a Survey

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  • Ralph de Haas

Abstract

This paper surveys the literature on law, finance, and growth and assesses its relevance to transition economies. It describes the contribution, as well as the limitations of the legal view literature with regard to our understanding of the causality between financial development and economic growth. The legal view demonstrates that, through its impact on the financial system, an effective legal system indirectly promotes economic development. However, the particularities of the transition process -- notably the existence of soft budget constraints -- are such that the methodology and the results of the legal view cannot be applied to transition economies without provisos.

Suggested Citation

  • Ralph de Haas, 2004. "Law, Finance, and Growth during Transition: a Survey," De Economist, Springer, vol. 152(3), pages 375-402, September.
  • Handle: RePEc:kap:decono:v:152:y:2004:i:3:p:375-402
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    Cited by:

    1. repec:onb:oenbwp:y:2010:i:1:b:1 is not listed on IDEAS
    2. Sándor Gardó, 2010. "Bank Governance and Financial Stability in CESEE: A Review of the Literature," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 6-31.

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