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 …

much larger where there is less state revenue and where the rule of law is weak. They also find that countries with a … and ineffective regulatory and tax administration can result in lower growth: the unofficial economy. Wealthy OECD … burden (not necessarily low statutory tax rates), sizable revenue mobilization, good rule of law and control of corruption …

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