We use cointegration analysis of a new longitudinal legal dataset to show that strengthening creditor rights in India during the 1990s and 2000s led to an increase in bank credit, supporting the view that legal systems can shape financial development.

This article examines the relationship between financial liberalization and stock market volatility in Indonesia. By looking at the time series properties of the Jakarta Composite Index (JCI) we identify breaks in stock market volatility which coincide with the timing of major policy events. Our...