The great reversals: the politics of financial development in the twentieth century

The great reversals: the politics of financial development in the twentieth century The state of development of the financial sector does not change monotonically over time. In particular, by most measures, countries were more financially developed in 1913 than in 1980 and only recently have they surpassed their 1913 levels. To explain these changes, we propose an interest group theory of financial development where incumbents oppose financial development because it breeds competition. The theory predicts that incumbents’ opposition will be weaker when an economy allows both cross-border trade and capital flows. This theory can go some way in accounting for the cross-country differences in, and the time-series variation of, financial development. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Financial Economics Elsevier

The great reversals: the politics of financial development in the twentieth century

Loading next page...
 
/lp/elsevier/the-great-reversals-the-politics-of-financial-development-in-the-lmpwt60Wyy
Publisher
Elsevier
Copyright
Copyright © 2003 Elsevier Science B.V.
ISSN
0304-405x
DOI
10.1016/S0304-405X(03)00125-9
Publisher site
See Article on Publisher Site

Abstract

The state of development of the financial sector does not change monotonically over time. In particular, by most measures, countries were more financially developed in 1913 than in 1980 and only recently have they surpassed their 1913 levels. To explain these changes, we propose an interest group theory of financial development where incumbents oppose financial development because it breeds competition. The theory predicts that incumbents’ opposition will be weaker when an economy allows both cross-border trade and capital flows. This theory can go some way in accounting for the cross-country differences in, and the time-series variation of, financial development.

Journal

Journal of Financial EconomicsElsevier

Published: Jul 1, 2003

References

  • Globalizing Capital
    Eichengreen, B.
  • Does trade cause growth?
    Frankel, J.A.; Romer, D.
  • Corporate control and the politics of finance
    Jensen, M.
  • Courts and relational contracts
    Johnson, S.; McMillan, J.; Woodruff, C.
  • Law and finance
    La Porta, R.; Lopez-de-Silanes, F.; Shleifer, A.; Vishny, R.
  • The quality of government
    La Porta, R.; Lopez-de-Silanes, F.; Shleifer, A.; Vishny, R.
  • The Rise and Decline of Nations
    Olson, M.
  • The political economy of corporate governance
    Pagano, M.; Volpin, P.
  • The politics of financial development
    Rajan, R.; Zingales, L.
  • Strong Managers and Weak Owners
    Roe, M.
  • Culture, openness, and finance
    Stulz, R.; Williamson, R.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off