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Legal Institutions and Financial Development

In: Handbook of New Institutional Economics

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  • Thorsten Beck
  • Ross Levine

Abstract

Why do some countries have growth-enhancing financial systems, while others do not? Why have some countries developed the necessary investor protection laws and contract-enforcement mechanisms to support financial institutions and markets, while others have not? This paper reviews existing research on the role of legal institutions in shaping financial development.
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Suggested Citation

  • Thorsten Beck & Ross Levine, 2005. "Legal Institutions and Financial Development," Springer Books, in: Claude Menard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 11, pages 251-278, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-25092-2_12
    DOI: 10.1007/0-387-25092-1_12
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    More about this item

    Keywords

    Corporate Governance; Legal Institution; Legal Origin;
    All these keywords.

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • G2 - Financial Economics - - Financial Institutions and Services

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