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Political Institutions and Financial Development: An Empirical Study

  • Huang, Yongfu

Summary This paper examines whether political institutional improvement promotes financial development, using a panel dataset of 90 developed and developing countries over 1960-99. The empirical evidence reveals a positive effect of institutional improvement on financial development at least in the short-run, particularly for lower income countries. The preliminary evidence by a before-after event study indicates that a democratic transformation is typically followed by an increase in financial development.

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Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 12 (December)
Pages: 1667-1677

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:12:p:1667-1677
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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