Publication:
Beyond Legal Origin and Checks and Balances : Political Credibility, Citizen Information, and Financial Sector Development

dc.contributor.author Keefer, Philip
dc.date.accessioned 2012-06-05T21:50:42Z
dc.date.available 2012-06-05T21:50:42Z
dc.date.issued 2007-03
dc.description.abstract The existing literature emphasizes and contrasts the role of political checks and balances and legal origin in determining the pace of financial sector development. This paper expands substantially on one aspect of this debate: the fact that government actions that promote financial sector development, whether prudent financial regulation or secure property and contract rights, are public goods and sensitive to political incentives to provide public goods. Tests of hypotheses emanating from this argument yield four new conclusions. First, two key determinants of those incentives-the credibility of pre-electoral political promises and citizen information about politician decisions-systematically promote financial sector development. Second, these political factors, along with political checks and balances, operate in part through their influence on the security of property rights, an argument asserted but not previously tested. Third, contrary to findings elsewhere in the literature, the political determinants of financial sector development are significant even in the presence of controls for legal origin. Finally, and again in contrast to the literature, the evidence here suggests that legal origin primarily proxies for political phenomena. Legal origin is a largely insignificant determinant of financial sector development when those phenomena are fully taken into account. en
dc.identifier http://documents.worldbank.org/curated/en/2007/03/7419560/beyond-legal-origin-checks-balances-political-credibility-citizen-information-financial-sector-development
dc.identifier.uri http://hdl.handle.net/10986/7204
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 4154
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject BALANCE SHEETS
dc.subject BUREAUCRATIC QUALITY
dc.subject CHECKS AND BALANCES
dc.subject CIVIL LAW
dc.subject COMMON LAW
dc.subject COMPETITIVENESS
dc.subject CORRUPTION
dc.subject CREDIBILITY OF GOVERNMENT COMMITMENTS
dc.subject CREDIBILITY OF GOVERNMENTS
dc.subject DEMOCRACY
dc.subject ECONOMIC DEVELOPMENT
dc.subject ECONOMIC GROWTH
dc.subject ECONOMY LITERATURE
dc.subject EMPIRICAL EVIDENCE
dc.subject EMPIRICAL RESEARCH
dc.subject EMPIRICAL WORK
dc.subject ENDOGENOUS VARIABLE
dc.subject EXECUTIVE DIRECTORS
dc.subject EXPROPRIATION
dc.subject FINANCIAL DEVELOPMENT
dc.subject FINANCIAL INSTITUTIONS
dc.subject FINANCIAL INTERMEDIARIES
dc.subject FINANCIAL LEGISLATION
dc.subject FINANCIAL MARKETS
dc.subject FINANCIAL SECTOR
dc.subject FINANCIAL TRANSACTIONS
dc.subject GDP
dc.subject GOVERNMENT ACTIONS
dc.subject GOVERNMENT COALITION
dc.subject GOVERNMENT POLICY
dc.subject GROWTH EQUATIONS
dc.subject GROWTH LITERATURE
dc.subject INCUMBENT
dc.subject INSTITUTIONAL VARIABLES
dc.subject INSURANCE
dc.subject INSURANCE COMPANIES
dc.subject INTEREST GROUP
dc.subject INTEREST RATES
dc.subject LEGAL SYSTEM
dc.subject LEGAL SYSTEMS
dc.subject MONETARY POLICY
dc.subject NATIONAL DEFENSE
dc.subject PER CAPITA INCOME
dc.subject POLICY MAKING
dc.subject POLICY RESEARCH
dc.subject POLITICAL COMPETITION
dc.subject POLITICAL ECONOMY
dc.subject POLITICAL INSTITUTIONS
dc.subject POLITICAL OUTCOMES
dc.subject POLITICAL RISK
dc.subject PRIVATE PROPERTY
dc.subject PRIVATE PROPERTY RIGHTS
dc.subject PRIVATE SECTOR
dc.subject PROPERTY RIGHTS
dc.subject PROTECTION OF PRIVATE
dc.subject PUBLIC GOOD
dc.subject PUBLIC GOOD PROVISION
dc.subject PUBLIC GOODS
dc.subject PUBLIC INVESTMENT
dc.subject REGULATORY DECISIONS
dc.subject RULE OF LAW
dc.subject SECURE PROPERTY RIGHTS
dc.subject SIGNIFICANT IMPACT
dc.subject SOCIAL COSTS
dc.subject SOCIAL INFRASTRUCTURE
dc.subject VETO
dc.subject VOTERS
dc.subject VOTING
dc.title Beyond Legal Origin and Checks and Balances : Political Credibility, Citizen Information, and Financial Sector Development en
dspace.entity.type Publication
okr.crosscuttingsolutionarea Public-Private Partnerships
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2007/03/7419560/beyond-legal-origin-checks-balances-political-credibility-citizen-information-financial-sector-development
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Poverty
okr.globalpractice Governance
okr.globalpractice Trade and Competitiveness
okr.identifier.doi 10.1596/1813-9450-4154
okr.identifier.externaldocumentum 000016406_20070227140453
okr.identifier.internaldocumentum 7419560
okr.identifier.report WPS4154
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/02/27/000016406_20070227140453/Rendered/PDF/wps4154.pdf en
okr.topic Private Sector Development :: Privatization
okr.topic Economic Theory and Research
okr.topic Law and Development :: Legal Products
okr.topic Macroeconomics and Economic Growth :: Political Economy
okr.topic Poverty Reduction :: Inequality
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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