This paper argues that better governance practices can reduce the costs, risks and uncertainty of financial intermediation. Our sample covers high-, middle- and low-income countries before and after the global financial crisis (GFC). We find that net interest margins of banks are lower if...

Can foreign aid be used to enhance good governance in recipient countries? This paper looks at the history of donor efforts to strengthen public institutions in developing countries, and how these have evolved in response to accumulated learning, changing fashions and donor interests. Systematic...

Inclusion in terms of both process (how decisions are made and who is included in that process and how and why) and outcomes (how wealth and prosperity are distributed and shared across a population and why) is a leading priority in international development, with the Sustainable Development...

When trading, firms choose between different payment contracts. As shown theoretically in Schmidt-Eisenlohr (forthcoming), this allows firms in international trade to optimally trade-off differences in financing costs and enforcement across countries. This paper provides evidence from a large...