The Politics of Financial Development: Evidence from Trade Liberalization

Incumbents in various industries have different incentives to promote or oppose financial development. Changes in the relative strength of promoter and opponent industries thus result in changes in the political equilibrium level of financial development. We conduct an event study using a sample of...

Full description

Bibliographic Details
Main Authors:	Braun, Matias, Raddatz, Claudio
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Trade Policy International Trade Organizations F130 Financial Institutions and Services: General G200
Online Access:	http://hdl.handle.net/10986/5446

id	okr-10986-5446
recordtype	oai_dc
spelling	okr-10986-54462021-04-23T14:02:22Z The Politics of Financial Development: Evidence from Trade Liberalization Braun, Matias Raddatz, Claudio Trade Policy International Trade Organizations F130 Financial Institutions and Services: General G200 Incumbents in various industries have different incentives to promote or oppose financial development. Changes in the relative strength of promoter and opponent industries thus result in changes in the political equilibrium level of financial development. We conduct an event study using a sample of 41 countries that liberalized trade during 1970 to 2000, and show that the strengthening of promoter relative to opponent industries resulting from liberalization is a good predictor of subsequent financial development. The benefits of developing the financial system are insufficient for financial development, and rents in particular hands appear to be necessary to achieve it. 2012-03-30T07:32:52Z 2012-03-30T07:32:52Z 2008 Journal Article Journal of Finance 00221082 http://hdl.handle.net/10986/5446 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Trade Policy International Trade Organizations F130 Financial Institutions and Services: General G200
spellingShingle	Trade Policy International Trade Organizations F130 Financial Institutions and Services: General G200 Braun, Matias Raddatz, Claudio The Politics of Financial Development: Evidence from Trade Liberalization
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Incumbents in various industries have different incentives to promote or oppose financial development. Changes in the relative strength of promoter and opponent industries thus result in changes in the political equilibrium level of financial development. We conduct an event study using a sample of 41 countries that liberalized trade during 1970 to 2000, and show that the strengthening of promoter relative to opponent industries resulting from liberalization is a good predictor of subsequent financial development. The benefits of developing the financial system are insufficient for financial development, and rents in particular hands appear to be necessary to achieve it.
format	Journal Article
author	Braun, Matias Raddatz, Claudio
author_facet	Braun, Matias Raddatz, Claudio
author_sort	Braun, Matias
title	The Politics of Financial Development: Evidence from Trade Liberalization
title_short	The Politics of Financial Development: Evidence from Trade Liberalization
title_full	The Politics of Financial Development: Evidence from Trade Liberalization
title_fullStr	The Politics of Financial Development: Evidence from Trade Liberalization
title_full_unstemmed	The Politics of Financial Development: Evidence from Trade Liberalization
title_sort	politics of financial development: evidence from trade liberalization
publishDate	2012
url	http://hdl.handle.net/10986/5446
_version_	1764395079061995520

The Politics of Financial Development: Evidence from Trade Liberalization

Similar Items