I estimate the impact of bank credit to the private sector on corruption using indicators of a country's legal origin as instrumental variables to assess causality. I find that bank credit reduces corruption, with the result robust to instrumenting for bank credit and for different controls

The post-crisis financial reform agenda is broad and complex, ranging from strengthening prudential regulation; to enhancing supervision; from mitigating pro-cyclicality to integrating micro- and macro-prudential oversight; from reducing the systemic risk associated with large and complex...

The recent development literature stresses that countries that receive large revenues from natural resource endowments typically raise less revenue from domestic taxation, and that this creates governance problems because the lower domestic tax effort reduces the incentive for the public...

The literature on the economics of fiscal decentralization stresses the potential for both positive and negative effects on the quality of governance in a country. The empirical evidence on the issue is scant. In this paper, we add to the empirical evidence by testing for a relationship between...