State history, legal adaptability and financial development
A country’s cumulative experience with statehood influences its ability to consolidate power and create a capable bureaucracy. Longer statehood experience gives countries more time to adapt their laws to local needs, provided the legal system is adaptable. We find that, relative to British common la...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2019
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| Online Access: | https://hdl.handle.net/10356/106480 http://hdl.handle.net/10220/47951 |
| _version_ | 1826126752473153536 |
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| author | Ang, James B. Fredriksson, Per G. |
| author2 | School of Social Sciences |
| author_facet | School of Social Sciences Ang, James B. Fredriksson, Per G. |
| author_sort | Ang, James B. |
| collection | NTU |
| description | A country’s cumulative experience with statehood influences its ability to consolidate power and create a capable bureaucracy. Longer statehood experience gives countries more time to adapt their laws to local needs, provided the legal system is adaptable. We find that, relative to British common law countries with the most flexible laws, German and Scandinavian civil law countries initially exhibit lower financial development. However, as their history of statehood grows longer, financial development improves in countries with adaptable laws such as the German and Scandinavian civil law countries. This is not the case in French civil law countries with more rigid legal systems. Our results mainly show no or at most a weakly negative effect of French civil law legal origin on financial development. We also explore how changes in stock market development over time, financial integration, and financial crisis are impacted by statehood experience, legal origins and their interaction. |
| first_indexed | 2024-10-01T06:57:30Z |
| format | Journal Article |
| id | ntu-10356/106480 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:57:30Z |
| publishDate | 2019 |
| record_format | dspace |
| spelling | ntu-10356/1064802021-02-04T09:13:22Z State history, legal adaptability and financial development Ang, James B. Fredriksson, Per G. School of Social Sciences DRNTU::Social sciences::Economic development State Antiquity State Capacity A country’s cumulative experience with statehood influences its ability to consolidate power and create a capable bureaucracy. Longer statehood experience gives countries more time to adapt their laws to local needs, provided the legal system is adaptable. We find that, relative to British common law countries with the most flexible laws, German and Scandinavian civil law countries initially exhibit lower financial development. However, as their history of statehood grows longer, financial development improves in countries with adaptable laws such as the German and Scandinavian civil law countries. This is not the case in French civil law countries with more rigid legal systems. Our results mainly show no or at most a weakly negative effect of French civil law legal origin on financial development. We also explore how changes in stock market development over time, financial integration, and financial crisis are impacted by statehood experience, legal origins and their interaction. Accepted version 2019-04-01T07:07:41Z 2019-12-06T22:12:46Z 2019-04-01T07:07:41Z 2019-12-06T22:12:46Z 2018 Journal Article Ang, J. B., & Fredriksson, P. G. (2018). State history, legal adaptability and financial development. Journal of Banking and Finance, 89, 169-191. doi:10.1016/j.jbankfin.2018.02.009 0378-4266 https://hdl.handle.net/10356/106480 http://hdl.handle.net/10220/47951 10.1016/j.jbankfin.2018.02.009 en Journal of Banking and Finance Journal of Banking and Finance © 2018 Elsevier B.V. All rights reserved. This paper was published in Journal of Banking and Finance and is made available with permission of Elsevier B.V. 53 p. application/pdf |
| spellingShingle | DRNTU::Social sciences::Economic development State Antiquity State Capacity Ang, James B. Fredriksson, Per G. State history, legal adaptability and financial development |
| title | State history, legal adaptability and financial development |
| title_full | State history, legal adaptability and financial development |
| title_fullStr | State history, legal adaptability and financial development |
| title_full_unstemmed | State history, legal adaptability and financial development |
| title_short | State history, legal adaptability and financial development |
| title_sort | state history legal adaptability and financial development |
| topic | DRNTU::Social sciences::Economic development State Antiquity State Capacity |
| url | https://hdl.handle.net/10356/106480 http://hdl.handle.net/10220/47951 |
| work_keys_str_mv | AT angjamesb statehistorylegaladaptabilityandfinancialdevelopment AT fredrikssonperg statehistorylegaladaptabilityandfinancialdevelopment |