Financial Development – A Political Institutions View |

Financial Development – A Political Institutions View


More and more empirical studies support the view that financial development is beneficial for economic growth and development. However, not many countries seem to have succeeded in establishing a developed financial system, despite widespread financial liberalization. Confronted with this finding, a new school of thought claims that effective protection of property rights in a country is the key to financial development. Such effective protection can only be provided by governments that impose constraints on their own powers, in other words, that operate under a system of checks and balances. In this presentation we compare over 200 episodes of accelerations in financial development since 1960 and demonstrate empirically that indeed the quality of a country’s political institutions is an essential determinant of sustained financial development.

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Marc Quintyn, Division Chief in the IMF Institute

Monday, 01 March 2010
12.15 p.m. - 1.30 p.m.

Seminar Room 3-5
Level 3, Manasseh Meyer
Lee Kuan Yew School of Public Policy
469C Bukit Timah Road
Singapore 259772

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