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The effect of dynamic legal tradition on financial development: panel data evidence


Voghouei, Hatra and Mohamed, Azali and Law, Siong Hook (2013) The effect of dynamic legal tradition on financial development: panel data evidence. European Journal of Law and Economics, 35 (1). pp. 109-136. ISSN 0929-1261; ESSN: 1572-9990


This study examines the effect of dynamic legal tradition on financial development. In line with the theory of “dynamic legal tradition” proposed by Beck et al. (Law, politics, and finance. World Bank, Washington, DC, 2001), political variables are employed in the analysis to assess whether these variables could affect the legal environment and hence financial development in countries with different adaptability. The empirical results from the panel data of 60 counties for the period 1980–2006, show that political power could change the legal environment, especially in common law countries, which in turn could affect the development of financial systems. The result demonstrates that political factors that promote shareholder rights greatly influence the development of financial system followed by political factors that promote investor protection.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
DOI Number: https://doi.org/10.1007/s10657-010-9191-x
Publisher: Springer
Keywords: Financial development; Dynamic legal tradition; Dynamic panel data
Depositing User: Nabilah Mustapa
Date Deposited: 25 Jul 2015 11:18
Last Modified: 25 Jul 2015 11:18
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1007/s10657-010-9191-x
URI: http://psasir.upm.edu.my/id/eprint/28298
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