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Does democracy foster financial development? An empirical analysis

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  • Yang, Benhua

Abstract

This paper examines whether democracy promotes financial development. While cross-section results show a positive association between democracy and bank development, this relationship disappears in panel regressions. The data also reveals that democracy is not positively related to stock market development.

Suggested Citation

  • Yang, Benhua, 2011. "Does democracy foster financial development? An empirical analysis," Economics Letters, Elsevier, vol. 112(3), pages 262-265, September.
  • Handle: RePEc:eee:ecolet:v:112:y:2011:i:3:p:262-265
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    References listed on IDEAS

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    13. North, Douglass C. & Weingast, Barry R., 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 803-832, December.
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    Cited by:

    1. Simplice A. Asongu, 2014. "Finance and Democracy in Africa," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 6(3), pages 92-116, October.
    2. Mahmoud Arayssi & Ali Fakih, 2015. "Institutions and development in MENA region: evidence from the manufacturing sector," International Journal of Social Economics, Emerald Group Publishing, vol. 42(8), pages 717-732, August.
    3. Asongu, Simplice & Nwachukwu, Jacinta, 2016. "Law, Politics and the Quality of Government in Africa," MPRA Paper 74231, University Library of Munich, Germany.
    4. Pierre Mandon & Clément Mathonnat, 2014. "Forms of Democracies and Financial Development," Working Papers halshs-01084679, HAL.
    5. Bill Francis & Eric Ofori, 2015. "Political regimes and stock market development," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 111-137, June.
    6. Pierre MANDON & Clément MATHONNAT, 2015. "Forms of Democracies and Financial Development," Working Papers 201523, CERDI.
    7. Pierre Mandon & Clément Mathonnat, 2015. "Forms of Democracies and Financial Development," Working Papers halshs-01196108, HAL.

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