Publication:
Law, Politics, and Finance

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dc.contributor.authorLevine, Ross
dc.contributor.authorBeck, Thorsten
dc.contributor.authorDemirguc-Kunt, Asli
dc.date.accessioned2014-08-26T15:46:45Z
dc.date.available2014-08-26T15:46:45Z
dc.date.issued2001-04
dc.description.abstractThe authors assess three established theories about the historical determinants of financial development. They also propose an augmented version of one of these theories. The law and finance view, stresses that different legal traditions emphasize, to differing degrees, the rights of individual investors relative to the state, which has important ramifications for financial development. The dynamic law and finance vie, augments the law and finance view, stressing that legal traditions also differ in their ability to adapt to changing conditions. The politics and finance view, rejects the central role of legal tradition, stressing instead that political factors shape financial development. The endowment view, argues that the mortality rates of European settlers, as they colonized various parts of the globe, influenced the institutions they initially created, which has had enduring effects on institutions today. When initial conditions produced an unfavorable environment for European settlers, colonialists tended to create institutions designed to extract resources expeditiously, not to foster long-run prosperity. The authors' empirical results are most consistent with theories that stress the role of legal tradition. The results provide qualified support for the endowment view. The data are least consistent with theories that focus on specific characteristics of the political structure, although politics can obviously affect the financial sector. In other words, legal origin - whether a country has a British, French, German, or Scandinavian legal heritage - helps explain the development of the country's financial institutions today, even after other factors are controlled for. Countries with a French legal tradition, tend to have weaker financial institutions, while those with common law, and German civil laws, tend to have stronger financial institutions.en
dc.identifierhttp://documents.worldbank.org/curated/en/2001/04/1089588/law-politics-finance
dc.identifier.doi10.1596/1813-9450-2585
dc.identifier.urihttps://hdl.handle.net/10986/19682
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2585
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACTIONS
dc.subjectACTS
dc.subjectADMINISTRATIVE COURTS
dc.subjectAUTHORITY
dc.subjectBANKRUPTCY
dc.subjectBANKRUPTCY LAW
dc.subjectBUREAUCRACY
dc.subjectCANON LAW
dc.subjectCENTRAL GOVERNMENT
dc.subjectCENTRALIZATION
dc.subjectCIVIL CODES
dc.subjectCIVIL LAW
dc.subjectCIVIL LAW SYSTEMS
dc.subjectCIVIL PROCEDURE
dc.subjectCIVIL SERVICE
dc.subjectCODES
dc.subjectCOLONIES
dc.subjectCOLONIZATION
dc.subjectCOMMERCIAL LAW
dc.subjectCOMMON LAW
dc.subjectCOMPARATIVE LAW
dc.subjectCORRUPTION
dc.subjectCOURT SYSTEM
dc.subjectDECISION-MAKING
dc.subjectDECISION-MAKING PROCESS
dc.subjectDISCLOSURE
dc.subjectECONOMIC DEVELOPMENT
dc.subjectELECTED REPRESENTATIVES
dc.subjectFINAL JUDGMENT
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SYSTEMS
dc.subjectFOREIGN LAW
dc.subjectINDIVIDUAL RIGHTS
dc.subjectINSTITUTIONAL DEVELOPMENT
dc.subjectJUDGES
dc.subjectJUDICIAL DECISIONS
dc.subjectJUDICIAL INDEPENDENCE
dc.subjectJUDICIAL REVIEW
dc.subjectJUDICIAL SYSTEM
dc.subjectJUDICIARY
dc.subjectJUSTICE
dc.subjectKINGS
dc.subjectLAWS
dc.subjectLAWYERS
dc.subjectLEGAL CODES
dc.subjectLEGAL CULTURE
dc.subjectLEGAL INSTITUTIONS
dc.subjectLEGAL REGULATION
dc.subjectLEGAL SYSTEM
dc.subjectLEGAL SYSTEMS
dc.subjectLEGISLATION
dc.subjectLEGISLATIVE ACTIONS
dc.subjectLEGISLATIVE SUPREMACY
dc.subjectLEGISLATURE
dc.subjectMONARCHY
dc.subjectNATIONALISM
dc.subjectPOLITICAL INSTITUTIONS
dc.subjectPOLITICAL POWER
dc.subjectPRIVATE LAW
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC OWNERSHIP
dc.subjectREVOLUTION
dc.subjectREVOLUTIONS
dc.subjectROLE OF LAW
dc.subjectROMAN LAW
dc.subjectSLAVERY
dc.subjectSTATE POWER
dc.titleLaw, Politics, and Financeen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crosscuttingsolutionareaGender
okr.crossref.titleLaw, Politics, and Finance
okr.date.disclosure2001-04-30
okr.date.doiregistration2025-04-10T09:58:32.857328Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2001/04/1089588/law-politics-finance
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeGovernance
okr.guid737291468767095941
okr.identifier.doi10.1596/1813-9450-2585
okr.identifier.externaldocumentum000094946_01050106221744
okr.identifier.internaldocumentum1089588
okr.identifier.reportWPS2585
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/05/11/000094946_01050106221744/Rendered/PDF/multi0page.pdfen
okr.sectorOther Finance
okr.sectorFinance
okr.topicLaw and Development::Judicial System Reform
okr.topicLaw and Development::Legal Products
okr.topicGender::Gender and Law
okr.topicSocial Protections and Labor::Labor Policies
okr.topicGovernance::National Governance
okr.topicLegal Institutions of the Market Economy
okr.unitFinance, Development Research Group
okr.volume1
relation.isAuthorOfPublication4694cd5a-bd90-594b-abe2-f5b681139e6d
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery4694cd5a-bd90-594b-abe2-f5b681139e6d
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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