Year: 2010
Type: article
Abstract: Only a minority of countries have succeeded in establishing a developed financial system, despite widespread financial liberalization. Confronted with this finding, the political institutions view claims that sustained financial deepening is most likely to take place in institutional environments where governments effectively impose constraints on their own powers in order to create trust. This paper identifies over 200 post-1960 episodes of accelerations in financial development in a large cross-section of countries. We find that the likelihood of an acceleration leading to sustained financial development increases greatly in environments that have high-quality political institutions.
Source: IMF Working Paper
Authors: Marc Quintyn, Geneviève Verdier
Institution: International Monetary Fund
Language: English
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W3121552290