Do financial sector reforms lead to financial development? :
evidence from a new dataset /
prepared by Thierry Tressel and Enrica Detragiache.

Description

Main Author

Tressel, Thierry.

Related Names

Detragiache, Enrica.
IMF Institute.
International Monetary Fund. Research Dept.

Language(s)

English

Published

Washington, D.C. : International Monetary Fund, c2008.

Subjects

Right of property > Right of property / Econometric models.
Banks and banking > Banks and banking / Econometric models.
Finance > Finance / Econometric models.
Economic development > Economic development / Econometric models.

Summary

This paper studies whether the policies that, over the past decades, liberalized banking systems around the world have resulted in deeper credit markets. To measure banking sector reforms we use a new index that tracks policy changes in five separate areas for 91 countriesover 1973-2005. We find that reforms have led to financial deepening, but only in countries with institutions that place checks and balances on political power. We interpret this asevidence of a complementarity between financial sector reforms and political institutions that protect property rights. Other country characteristics do not seem to significantly influencethe effect of banking reforms on financial development.

Note

"December 2008."
At head of title: Research Department and IMF Institute.
Also available via the World Wide Web.

Physical Description

42 p. : ill. ; 28 cm.

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