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Private Credit in 129 Countries

  • Simeon Djankov
  • Caralee McLiesh
  • Andrei Shleifer

We investigate cross-country determinants of private credit, using new data on legal creditor rights and private and public credit registries in 129 countries. We find that both creditor protection through the legal system and information sharing institutions are associated with higher ratios of private credit to GDP, but that the former is relatively more important in the richer countries. An analysis of legal reforms also shows that improvements in creditor rights and in information sharing precede faster credit growth. We also find that creditor rights are extremely stable over time, contrary to the convergence hypothesis. Finally, we find that legal origins are an important determinant of both creditor rights and information sharing institutions.

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File URL: http://www.nber.org/papers/w11078.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11078.

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Date of creation: Jan 2005
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Publication status: published as Djankov, Simeon & McLiesh, Caralee & Shleifer, Andrei, 2007. "Private credit in 129 countries," Journal of Financial Economics, Elsevier, vol. 84(2), pages 299-329, May.
Handle: RePEc:nbr:nberwo:11078
Note: AP CF EFG LE PE
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