What Determines Financial Development? Culture, Institutions or Trade

Herger, Nils; Hodler, Roland; Lobsiger, Michael

doi:10.1007/s10290-008-0160-1

Cited by 67 publications

(42 citation statements)

References 27 publications

(66 reference statements)

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“…As a consequence, incumbents will try to influence the political process to impede the respective reforms (Tommasino, 2006). According to Herger et al (2008) institutions constraining political elites from expropriating financiers could have a positive effect on capital markets. Pistor et al (2000) argued that legal reforms can have a strong impact especially in transition economies.…”

Section: Introductionmentioning

confidence: 99%

Institutional Determinants of Financial Development in MENA countries

Cherif

Dreger

2016

Review Development Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. JEL: F15, G15, G28 Terms of use: Documents in

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Section: Introductionmentioning

confidence: 99%

Institutional Determinants of Financial Development in MENA countries

Cherif

Dreger

2016

Review Development Economics

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“…One is geography that affects on financial development through its effect of institutions and trade openness. Following Huang (2005) and Herger et al. (2007).…”

Section: Methodology and Datamentioning

confidence: 99%

“…One is geography that affects on financial development through its effect of institutions and trade openness. Following Huang (2005) and Herger et al (2007). A country's distance from the quarter is used (LATITUDE), which takes the value between 0 and 1 (0 designates the location of the quarter and 1 designates the poles.).…”

Section: Other Control Variablesmentioning

confidence: 99%

“…Following Beck et al (2001), Stulz and Williamson (2002), Huang (2005) and Herger et al (2007), several indicators for capturing cultural specification of the countries were considered. Language and religion are two dimensions of culture that have the most influence on financial development.…”

Section: Other Control Variablesmentioning

confidence: 99%

“…However, as this was an indirect test, 5 it did not address the effects of the political factors in creating economic institutions, which affect financial development. In another study, Herger et al (2007) attempted to explain the differences in the size of capital markets across countries, by studying theories that emphasised cultural values, dysfunctional institutions or impediments to trade as obstacles to financial development. Although they pointed to political factors as affecting financial development through economic institutions, they did not, in this instance, look into the important effect of de facto political power.…”

Section: Introductionmentioning

confidence: 99%

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Does the Political Institution Matter for Financial Development?

Voghouei

Azali

Law

2011

J of App Econs and Policy

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The study examines the effect of economic institutions on financial development, where economic institutions themselves are endogenous and determined by political power. Following the theory of “economic institution” proposed by Acemoglu et al. (2004), two groups of political power (de jure political power or political institution and de facto political power or distribution of resource) are employed in the analysis. By using the panel data of sixty counties during 1980–2006, the empirical results show that political power is a statistically significant determinant of economic institutions and hence affects the development of financial systems. The result demonstrates that de jure political power has great significant effect on financial development than de facto political power.

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