A survey of the determinants of financial development

The positive effects of financial development on economic growth have encouraged researchers to study the determinants of financial development. Based on the theoretical and empirical studies undertaken, institutions, openness of trade and financial markets, legal tradition, and political economy are identified as factors promoting the financial system. Of these, political economy factors, which can have both direct and indirect effects through other determinants, could be considered the most influential factors in financial development. Variations in the political economy of countries could well explain variations in their financial development. Although all studies show the significant effects of these determinants on financial development, further research is needed to assess the impact of each determinant and the policies that could best promote financial development.     

区域经济协调发展的金融法控制研究

随着市场经济制度的不断完善,同时区域经济发展的差距也拉大了,虽然区域经济不协调发展的解决有多种办法,但金融法作为宏观调控居于核心地位。本文首先对区域经济协调发展金融法调控的内涵和相关的理论进行了分析,紧接着指出我国区域经济协调发展金融法调控的现状、存在的问题;最后提出完善我国区域经济协调发展金融调控法律制度的对策建议。     

Does financial development help to align growth opportunities with growth? Evidence from industry-level data

Financial institutions are expected to play a crucial role in reallocating resources in favor of industries facing greater global and local shocks to growth opportunities. Fisman and Love, in their paper entitled “Financial development and intersectoral allocation: A new approach”, argue that growth opportunities are unobservable and propose a new methodology to test the capital allocation hypothesis. The methodology is based on correlations in the patterns of intra-industry growth between two countries and similarities in the level of financial development and income. This paper extends their methodology by proposing direct and forward-looking measures of local and global growth opportunities, obtained by interacting the country’s patterns of industrial specialization with industry-level price-earnings ratios, as in the paper “Global growth opportunities and market integration” by Bekaert et al. The results, obtained in a cross-section framework including 37 developed and developing countries over the period 1992–2006, confirm the relevance of financial development to promote economic growth and to help industries in taking advantage of global and local growth opportunities. They also show that the methodology developed by Fisman and Love can be extended to include direct measures of growth opportunities.     

Immigration and labour-market outcomes in the United States: a political-economy puzzle

Based on a larger survey of the literature (Gaston and Nelson,2000), this paper argues: (i) that econometric research uniformlyfinds very small labour-market effects of immigration; (ii)that labour and trade economists have differed in their interpretationof this finding; and (iii) that this difference is driven exclusivelyby different dimensionality assumptions (with labour economistspreferring a 1-sector x m-factor model and trade economistsan n-sector x m-factor model). It is then argued that the tradeeconomists' model, along with its presumption of factor-priceinsensitivity to immigration is the more useful as a presumptiongenerator. The paper concludes with a discussion of the political-economyimplications of these results.     

Competition Policy and Innovation

The question addressed by the paper is whether standard proceduresand widely accepted insights of competition policy remain validwhen one deals with potentially anti-competitive conduct ininnovative industries. The question of appropriateness arisesbecause competition in these industries displays features thatare radically different from those encountered in traditionalsectors of the economy. Competition is for the market ratherthan in the market, dynamic aspects of competition matter morethan allocative aspects, intellectual property rights (IPR)reinforce network effects present in knowledge-based industries.The paper examines why these differences matter with respectto market delineation, assessment of intensity of competition,and predatory conduct. It also raises the question as to whatextent competition law limits the innovators' rights not tolicense their inventions to others, especially when they correspondto essential facilities. It explores the problem created byexcessive protection as well as the hold-up problem that arisesin a context of sequential innovations. It examines the antitrustposition in regard to the treatment of collaborative arrangementsamong holders of IPRs, such as cross-licences, patent-pools,and joint-standard settings. Finally, it presents a discussionon a possible role of competition law in shaping intellectualproperty laws in order to benefit from the complementarity betweenintellectual protection and antitrust rules.     

新型农村金融服务主体与发展定位:解析村镇银行

新一轮针对农村金融的密集调控收效不大,新型农村金融机构未能充分发挥服务"三农"的功能,却在一些地区开始变为地方政府的融资工具。有效根除新型农村金融机构发展的制度供给抑制,要改革新型农村金融机构组织与行为法律制度,保障其自身的营利能力;要完善新型农村金融机构监管法律制度,确保其服务"三农"的基本功能;要建立健全农村金融的总体法律框架,完善新型农村金融机构发展的外部法治环境,增进新型农村金融机构防范和抵御风险的能力。     

Financial Development,Growth Volatility and Information Asymmetry in Sub‐Saharan Africa: Does Law Matter?

We re‐examine the law–finance theory relying on 33 countries in sub‐Saharan Africa over the period 2004–2011. Our evidence suggests that legal origin significantly explains cross‐country differences in financial development and economic volatility. More importantly, relative to civil law, English common law countries and those in Southern Africa have higher financial sector development both in terms of financial activity and banking efficiency on the back of lower volatility. While private credit bureau positively (negatively) affects financial development (economic volatility) with economically large impact for English legal legacy countries, the latter effect is contingent on the form of legal origin suggesting that, the establishment of information sharing offices per se may be insufficient in taming growth vagaries.     

The assessment: financial instability

This paper analyses the causes, consequences, and cures forfinancial instability based on nine articles on this subjectin the Oxford Review of Economic Policy. It argues that thearticles suggest a high degree of consensus about the policiesrequired to minimize risks of financial instability and thepolicies required to tackle it if it emerges.     

Law, Finance, and Growth during Transition: a Survey

This paper surveys the literature on law, finance, and growth and assesses its relevance to transition economies. It describes the contribution, as well as the limitations of the legal view literature with regard to our understanding of the causality between financial development and economic growth. The legal view demonstrates that, through its impact on the financial system, an effective legal system indirectly promotes economic development. However, the particularities of the transition process – notably the existence of soft budget constraints – are such that the methodology and the results of the legal view cannot be applied to transition economies without provisos.     

论中国古代传统法律文化的特点——从权与法的关系谈起

所谓法律文化,就是指一个民族在法制发展中所形成的法律价值观,它指导着一国法治建设的发展,并通过立法、司法等法律活动表现出来。文章便试图通过对我国古代传统的权与法关系剖析,来阐释我国传统法律文化的内涵与特点。     

我国金融机构市场退出的制度安排构想

随着我国金融业国际化进程的逐步推进,我国面临的金融风险也日益加重。本文针对我国关于金融机构退出行为法律规定以及在解决实际问题中存在的问题,按照国际惯例并结合中国实际,分别从市场退出的主持机构和职责、退出程序、实施细则、清偿程序及原则、存款保障机制以及外资金融机构的清偿和解散等角度提出了金融机构市场退出机制的制度安排构想。     

Law and Finance Revisited: Evidence from African Countries

The law and finance theory essentially states that legal origins are a significant determinant of financial development. The conclusion from the law and finance theory is that countries whose legal traditions derived from British Common Law have better developed financial markets than countries following French Civil Law. This study conducted an empirical investigation of the law and finance theory for African countries. Our empirical results showed that legal origins are insignificant in explaining financial development but rather, legal effectiveness significantly explains cross‐country differences in financial development in Africa. We concluded that the law and finance theory does not hold in African countries.     

金融发展与经济增长互动机制初探

针对金融发展理论与实证研究的分歧,引出金融发展的度量问题。本文将分歧的产生归因于两点:一是对金融发展的度量常常局限于对金融中介的度量,而忽视金融市场;二是有关金融发展指标没有考虑金融风险因素。进一步从金融生态的角度,探讨金融发展与经济增长的互动关系,建立了分析金融发展与经济增长相互关系的指标体系。     

China’s rule of law in New Era: the rise of regulation and formalism

ABSTRACT

China’s financial development and economic growth is achieved under weak legal institutions. The literature attributes this counterexample of law–finance–growth nexus to (a) alternative mechanisms in China such as incentives, reputation and relationships and (b) a well-functioning xinfang system with common law features. In recent years, China has made increasing efforts to strengthen its rule of law. The Communist Party of China (CPC) has taken the lead by launching a far-reaching campaign against corruption, establishing a system of inspection tours, and promulgating a large number of regulations. We argue that using regulations to complement laws is effective: CPC has enough bureaucratic prowess to crack down on corruption whereas the courts are subject to subversion by powerful interests. We also discuss the drawbacks of this approach: regulations aiming at ex ante control of corruption substantially increase procedural formalism and limit the discretion of local governments and state-owned enterprises.     

The Nexus between IT Investment and Banking Performance in Korea

The purpose of this paper is to investigate the implications of ‘Asian Value (AV)’ discourse upon the future of ASEM. The contention here is that such discourse within ASEM is contributing to the construction of a still unidentified Asian region. Moreover, AV discourse has been initiated by individual Asian leaders in order to enhance Asia's bargaining position vis‐à‐vis Europe, emphasizing the cultural differences between the two regions.     

OPTIMAL PRE-COMMITMENT IN MACROECONOMIC POLICY: A GAME THEORETIC ANALYSIS OF FISCAL POLICY

The version of the paper published in Oxford Economic Papers(Volume 42, October 1990, pp. 695–714) erroneously omittedthe figures. This note presents the figures and briefly describesthe results they show. The paper proposed a new solution to the problem of time inconsistency.A subgame-perfect trigger strategy equilibrium was presentedin which the public expected the government to renege on itsoriginally announced policy at some later date. The government'spre-commitment to its announced policy was determined endogenouslyas part of the equilibrium. The equilibrium was illustrated using Blanchard's (1985) modelof fiscal policy. I examined the [political] problem of maintainingaggregate consumption while reducing the level of governmentdebt. The problem of time inconsistency arises in this contextbecause the government has an incentive to renege on its promiseto raise future taxes. Numerical solutions of the model showedthat the government would renege after a period that dependedon its expected tenure and preferences. Figures 1 to 4 showthe behavior of the economy under policies with no pre-commitment([t₀t^*) = 0), a moderate period of precommitment ([t₀t^*) = 33.5),and a long period of pre-commitment ([t₀t^*) = 140.2). Figure 1 shows that governments with greater credibility willprefer to push the costs of falling consumption further intothe future. This is achieved by adopting policies that promiseto raise future revenues while cutting current taxes so thatthe fall in the value of government debt is offset by the risein human wealth [see Figures 2 and 4]. One important consequenceof these policies is that the level of government debt risesduring much of the period of pre-commitment. Figure 5 is used in the appendix to prove proposition 1     

Financial intermediaries and economic development: The Belgian case

Abstract

The role of financial intermediaries in economic development has been highlighted, most recently, by John Gurley and Edward Shaw, who contend that most economists consider only real variables in their analyses of economic development while neglecting those which are strictly financial in nature.¹ To remedy this neglect Gurley and Shaw have constructed a model which stresses the developmental aspects of financial intermediaries. This paper is an application of that model to Belgium in the 1830s. It first presents the model in skeletal form and then briefly describes the state of the Belgian economy during the 1830's. The focal point of the paper is an analysis of the activities of the Société Générale de Belgique and the Banque de Belgique, the first large-scale financial intermediaries to engage in development finance.     

LABOUR SKILLS AND HUMAN CAPITAL IN THE EXPLANATION OF TRADE PATTERNS

In the discussion of the qualitative inferences to be drawnfrom the signs of _s and c₃ [OEP 43.2 p. 448], possibilities(ii), (iii) and (iv) and the beginning of the immediately followingparagraph should read:

1. if both _s and c₃ are positive and ß₃₁> ß₃₂
2. if _s is positive and c₃ is negative theneither ß₃₁and ß₃₂ are both positive andß₃₁ > ß₃₂,or they are both negativeand |ß₃₂|>|ß₃₁|,or ß₃₁ ispositive and ß₃₂ is negative.
3. if _sis negative andc₃ is positive then either ß₃₁and ß₃₂ areboth positive and ß₃₂ < ß₃₁,or theyare both negative and |ß₃₁| > |ß₃₂|,or ß₃₁ is negative and ß₃₂ is positive.

Notice that without first confirming that _s = 0 when c³ 0 nothingmuch can be said about the factor content of trade by lookingat c₃ alone; for, in terms of signs of ß₃₁ and ß₃₂,c₃ < 0 precludes only the combination (ß₃₁ <0 & ß₃₂ > 0); and c₃ > 0 precludes onlythe combination (ß₃₁ > 0 & ß₃₂ <0). Similarly...     

金融信用之法律制度支撑——一个法经济学视角的解读

金融活动的存在与正常运转有赖于良好的信用制度与法治环境,金融信用是金融业赖以生存的基础。良好的金融信用依靠多种因素的支持,法律制度的健全是关键。本文主要从法经济学的视角提出构建完善的金融信用法律制度体系,以此防范金融信用风险,保障国民经济的增长与发展,进而促进社会的安全与稳定。     

风险管理理论综述

随着世界金融体系的完善和发展,金融风险管理的重要性也逐渐凸现。金融风险管理理论从20世纪30年代开始萌芽,80年代末开始蓬勃发展。本文对风险管理理论发展各阶段的重要理论进行了梳理揭示了金融风险管理理论逐渐发展和成熟的过程。