The Legal Origins of Financial Development: Evidence from the Shanghai Concessions

2021 ◽  
Author(s):  
Ross Eric Levine ◽  
Chen Lin ◽  
Chicheng Ma ◽  
Yuchen Xu
Keyword(s):  
Financial Development ◽  
Legal Origins

Legal Origin, Institutional Quality, and Islamic Finance Development: Does Shari’a Matter?

2020 ◽  
Vol 13 (2) ◽  
pp. 345-369
Author(s):  
Rihab Grassa
Keyword(s):  
Financial Development ◽  
Legal System ◽  
Civil Law ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Financial Industry ◽  
Legal Origin ◽  
Muslim Population ◽  
Legal Origins ◽  
Shari'a Law

AbstractPrevious studies on financial development have shown that differences in the legal origin explain differences in financial development. Using historical comparisons and cross-country regressions for 40 countries observed for the period from 2005 to 2018, our research assesses how different legal origins have affected the development of Islamic finance worldwide. More particularly, our research assesses empirically why and how the adoption of Shari’a, wholly or partially (combined with common or civil law), could explain the level of development of Islamic finance in different jurisdictions. Our primary results show that countries adopting a Shari’a legal system have a very well-developed Islamic financial system. Moreover, countries adopting a mixed legal system based on common law and Shari’a law have sufficient flexibility within their legal systems to make changes to their laws in response to the changing socioeconomic conditions, and this has helped the development of the Islamic financial industry. However, countries adopting a mixed legal system based on both civil law and Shari’a law appear less flexible in making changes to their old laws and this thwarted the development of the Islamic financial industry in these countries. Furthermore, we have found that the concentration of a Muslim population (the percentage of Muslim population) along with the level of income have both had a positive effect on the development of Islamic banking assets and on the development of Islamic banking as a whole.

The Legal Origins of Financial Development: Evidence from the Shanghai Concessions

2021 ◽  
Author(s):  
Ross Eric Levine ◽  
Chen Lin ◽  
Chicheng Ma ◽  
Yuchen Xu
Keyword(s):  
Financial Development ◽  
Legal Origins

The Legal Origins of Financial Development: Evidence from the Shanghai Concessions

2021 ◽  
Author(s):  
Ross Eric Levine ◽  
Chen Lin ◽  
Chicheng Ma ◽  
Yuchen Xu
Keyword(s):  
Financial Development ◽  
Legal Origins

Finance and Politics: A Review Essay Based on Kenneth Dam's Analysis of Legal Traditions in The Law–Growth Nexus

2009 ◽  
Vol 47 (3) ◽  
pp. 781-800 ◽  
Author(s):  
Mark J Roe ◽  
Jordan I Siegel
Keyword(s):  
Financial Markets ◽  
Financial Development ◽  
Development Policy ◽  
Policy Making ◽  
Alternative Hypothesis ◽  
Legal Tradition ◽  
The Core ◽  
Legal Traditions ◽  
Legal Origins ◽  
Government Power

Strong financial markets are widely thought to propel economic development, with many in finance seeing legal tradition as fundamental to protecting investors sufficiently for finance to flourish. Kenneth Dam finds that the legal tradition view inaccurately portrays how legal systems work, how laws developed historically, and how government power is allocated in the various legal traditions. Yet, after probing the legal origins' literature for inaccuracies, Dam does not deeply develop an alternative hypothesis to explain the world's differences in financial development. Nor does he challenge the origins core data, which could be origins' trump card. Hence, his analysis will not convince many economists, despite that his legal learning suggests conceptual and factual difficulties for the legal origins explanations. Yet, a dense political economy explanation is already out there and the origins-based data has unexplored weaknesses consistent with Dam's contentions. Knowing if the origins view is truly fundamental, flawed, or secondary is vital for financial development policy making because policymakers who believe it will pick policies that imitate what they think to be the core institutions of the preferred legal tradition. But if they have mistaken views, as Dam indicates they might, as to what the legal traditions' institutions really are and which types of laws are effective, or what is really most important to financial development, they will make policy mistakes—potentially serious ones.

scholarly journals African financial development dynamics: big time convergence

2014 ◽  
Vol 5 (2) ◽  
pp. 160-194 ◽  
Author(s):  
Simplice A. Asongu
Keyword(s):  
Financial Development ◽  
Regional Integration ◽  
Portfolio Diversification ◽  
Institutional Reforms ◽  
Financial Intermediary ◽  
Content Type ◽  
Legal Origins ◽  
Catching Up ◽  
Sub Saharan ◽  
Practical Implications

Purpose – Assessment of African financial development dynamic convergences in money, credit, efficiency and size. The paper aims to discuss these issues. Design/methodology/approach – The empirical evidence is premised on 11 homogenous panels based on regions (Sub-Saharan and North Africa), income-levels (low, middle, lower-middle and upper-middle), legal-origins (English common-law and French civil-law) and religious dominations (Christianity and Islam). The paper examines convergence in financial intermediary dynamics of depth, efficiency, activity and size. Findings – Findings suggest that countries with small-sized financial intermediary depth, efficiency, activity and size are catching-up countries with large-sized financial intermediary depth, efficiency, activity and size, respectively. The paper also provide the speeds of convergence and time necessary to achieve a full (100 percent) convergence. Practical implications – The presence of strong links among African banking sectors may present little opportunity for portfolio diversification. The convergence patterns show positive steps toward regional integration. As a policy implication, African governments should not relent in structural and institutional reforms. Originality/value – It is the first critical assessment of convergence in financial intermediary development dynamics in the African continent.

scholarly journals CULTURE, LEGAL ORIGINS, AND FINANCIAL DEVELOPMENT

2019 ◽  
Vol 57 (2) ◽  
pp. 1016-1037 ◽  
Author(s):  
James B. Ang
Keyword(s):  
Financial Development ◽  
Legal Origins

scholarly journals The Legal Origins of Financial Development: Evidence from the Shanghai Concessions

2021 ◽  
Author(s):  
Ross Levine ◽  
Chen Lin ◽  
Chicheng Ma ◽  
Yuchen Xu
Keyword(s):  
Financial Development ◽  
Legal Origins

Financial Systems and economic Development in the Russian Regions: A Comparative Analysis

2015 ◽  
pp. 94-108 ◽  
Author(s):  
K. Krinichansky
Keyword(s):  
Economic Development ◽  
Comparative Analysis ◽  
Financial Development ◽  
Public Debt ◽  
Fixed Capital ◽  
Russian Regions ◽  
Growth Mechanisms ◽  
Financial Systems ◽  
Debt Market ◽  
Regions Of Russia

The paper identifies and assesses the closeness of the connection between incremental indicators of the financial development in the regions of Russia with the incremental regional GDP and the investment in fixed capital. It is shown that the positioning of the region as an independent participant of public debt market matters: the regional GDP and investment in fixed capital grow more rapidly in the regions which are regularly borrowing on the sub-federal bonds market. The paper also demonstrates that the poorly developed financial system in some regions have caused the imperfection of the growth mechanisms since the economy is not able to use the financial system’s functions.

Credit Market Depth and Income Inequality in Vietnam: A Panel-Data Analysis

2016 ◽  
pp. 5-18
Author(s):  
Hoi Le Quoc ◽  
Hoi Chu Minh
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Income Inequality ◽  
Financial Development ◽  
Inflection Point ◽  
Panel Data Analysis ◽  
Credit Market ◽  
Method Of Moment ◽  
Market Depth ◽  
Generalized Method Of Moment

Financial development could exert various effects on income distribution of a country. By employing Generalized Method of Moment, this paper aims at examining the impacts of credit market depth, one of most used financial development barometers, on income inequality in Vietnam. The empirical findings show that expanding credit market in the country could lead to higher income inequality. We have not found evidence that supports the hypothesis of an inverted U-shaped relation ever introduced by Greenwood and Jovanovich, although this hypothesis may still hold in a sense that Vietnam has not reached to the inflection point to generate such a curve alike.

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