Law, endowments, and finance [Dataset]


Using a sample of former colonies, this paper assesses two theories regarding the historical determinants of financial development. The law and finance theory holds that legal traditions, brought by colonizers, differ in terms of protecting the rights of private investors vis-à-vis the state, with important implications for financial development. The endowment theory argues that the disease environment encountered by colonizers influences the formation of long-lasting institutions. The empirical results provide evidence for both theories. However, initial endowments are more robustly associated with financial intermediary development and explain more of the cross-country variation in financial intermediary and stock market development.

Universe: 70 former colonies

Metadata Access
Creator T. Beck; A. Demirgüç; R. Levine
Publisher DataverseNL
Contributor DataverseNL
Publication Year 2013
Rights CC-BY-4.0; info:eu-repo/semantics/openAccess;
OpenAccess true
Resource Type Miscellaneous data; Dataset
Format application/vnd.openxmlformats-officedocument.wordprocessingml.document; application/
Size 40502; 165888
Version 5.0
Discipline Business and Management; Economics; Social and Behavioural Sciences
Spatial Coverage 70 former colonies