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Legal Institutions and Financial Development

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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.

Suggested Citation

  • Thorsten Beck & Ross Levine, 2004. "Legal Institutions and Financial Development," NBER Working Papers 10417, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:10417
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    • K2 - Law and Economics - - Regulation and Business Law

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