This paper proposes and empirically validates four theories of why legal origin influences growth and welfare through … finance. It is a natural extension of "Law and finance: why does legal origin matter?" by Thorsten Beck, Asli Demirgüç …) hypotheses that English common-law countries tend to have better developed financial intermediaries than French civil-law …

This paper proposes and empirically validates four theories of why legal origin influences growth and welfare through … finance. It is a natural extension of “Law and finance: why does legal origin matter?” by Thorsten Beck, Asli Demirgüç …) hypotheses that English common-law countries tend to have better developed financial intermediaries than French civil-law …

increases and law and order improves, financial development becomes more effective in reducing inequality. …