The value of equity market transactions in emerging economies soared from about 2 percent of the world total in 1986 to 12 percent in 1996. This boom was accompanied by an explosion of international capital flows, especially flows into developing country stock markets. Moreover, while equity...

(Disponible en idioma inglés únicamente) El valor de las operaciones en el mercado bursátil en economías emergentes se disparó de alrededor de dos por ciento del total mundial en 1986 a 12% en 1996. Ese repunte fue acompañado por una explosión de los flujos internacionales de capitales,...

This paper examines the relationship between the legal system and banking development and traces this connection through to long-run rates of per capita GDP growth, capital stock growth, and productivity growth. The data indicate that countries where the legal system (1) emphasizes creditor...

Although research shows that financial development accelerates aggregate economic growth, economists have not resolved conflicting theoretical predictions and ongoing policy disputes about the cross-firm distributional effects of financial development. Using cross-industry, cross-country data,...

Given conflicting theoretical predictions about the impact of stock markets and banks on economic growth, this paper empirically evaluates this debate. The results emphasize the growth-enhancing role of stock markets and banks. Chile is clearly an outlier; it has less liquid stock markets and...