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

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dc.contributor.authorKeefer, Philip
dc.date.accessioned2012-06-05T21:50:42Z
dc.date.available2012-06-05T21:50:42Z
dc.date.issued2007-03
dc.description.abstractThe 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.identifierhttp://documents.worldbank.org/curated/en/2007/03/7419560/beyond-legal-origin-checks-balances-political-credibility-citizen-information-financial-sector-development
dc.identifier.doi10.1596/1813-9450-4154
dc.identifier.urihttps://hdl.handle.net/10986/7204
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4154
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectBALANCE SHEETS
dc.subjectBUREAUCRATIC QUALITY
dc.subjectCHECKS AND BALANCES
dc.subjectCIVIL LAW
dc.subjectCOMMON LAW
dc.subjectCOMPETITIVENESS
dc.subjectCORRUPTION
dc.subjectCREDIBILITY OF GOVERNMENT COMMITMENTS
dc.subjectCREDIBILITY OF GOVERNMENTS
dc.subjectDEMOCRACY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMY LITERATURE
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL RESEARCH
dc.subjectEMPIRICAL WORK
dc.subjectENDOGENOUS VARIABLE
dc.subjectEXECUTIVE DIRECTORS
dc.subjectEXPROPRIATION
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL LEGISLATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL TRANSACTIONS
dc.subjectGDP
dc.subjectGOVERNMENT ACTIONS
dc.subjectGOVERNMENT COALITION
dc.subjectGOVERNMENT POLICY
dc.subjectGROWTH EQUATIONS
dc.subjectGROWTH LITERATURE
dc.subjectINCUMBENT
dc.subjectINSTITUTIONAL VARIABLES
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINTEREST GROUP
dc.subjectINTEREST RATES
dc.subjectLEGAL SYSTEM
dc.subjectLEGAL SYSTEMS
dc.subjectMONETARY POLICY
dc.subjectNATIONAL DEFENSE
dc.subjectPER CAPITA INCOME
dc.subjectPOLICY MAKING
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL COMPETITION
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL INSTITUTIONS
dc.subjectPOLITICAL OUTCOMES
dc.subjectPOLITICAL RISK
dc.subjectPRIVATE PROPERTY
dc.subjectPRIVATE PROPERTY RIGHTS
dc.subjectPRIVATE SECTOR
dc.subjectPROPERTY RIGHTS
dc.subjectPROTECTION OF PRIVATE
dc.subjectPUBLIC GOOD
dc.subjectPUBLIC GOOD PROVISION
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC INVESTMENT
dc.subjectREGULATORY DECISIONS
dc.subjectRULE OF LAW
dc.subjectSECURE PROPERTY RIGHTS
dc.subjectSIGNIFICANT IMPACT
dc.subjectSOCIAL COSTS
dc.subjectSOCIAL INFRASTRUCTURE
dc.subjectVETO
dc.subjectVOTERS
dc.subjectVOTING
dc.titleBeyond Legal Origin and Checks and Balances : Political Credibility, Citizen Information, and Financial Sector Developmenten
dspace.entity.typePublication
okr.crosscuttingsolutionareaPublic-Private Partnerships
okr.crossref.titleBeyond Legal Origin And Checks And Balances : Political Credibility, Citizen Information, And Financial Sector Development
okr.date.doiregistration2025-04-10T09:45:42.564286Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/03/7419560/beyond-legal-origin-checks-balances-political-credibility-citizen-information-financial-sector-development
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticePoverty
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.guid603151468323721335
okr.identifier.doi10.1596/1813-9450-4154
okr.identifier.externaldocumentum000016406_20070227140453
okr.identifier.internaldocumentum7419560
okr.identifier.reportWPS4154
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/02/27/000016406_20070227140453/Rendered/PDF/wps4154.pdfen
okr.topicPrivate Sector Development::Privatization
okr.topicEconomic Theory and Research
okr.topicLaw and Development::Legal Products
okr.topicMacroeconomics and Economic Growth::Political Economy
okr.topicPoverty Reduction::Inequality
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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