The value of equity market transactions in emerging economies soared from about 2 percent of the world total in 1986 to 12 percent in 1996. This boom was accompanied by an explosion of international capital flows, especially flows into developing country stock markets. Moreover, while equity...

(Disponible en idioma inglés únicamente) El valor de las operaciones en el mercado bursátil en economías emergentes se disparó de alrededor de dos por ciento del total mundial en 1986 a 12% en 1996. Ese repunte fue acompañado por una explosión de los flujos internacionales de capitales,...

This paper examines the relationship between the legal system and banking development and traces this connection through to long-run rates of per capita GDP growth, capital stock growth, and productivity growth. The data indicate that countries where the legal system (1) emphasizes creditor...

Given conflicting theoretical predictions about the impact of stock markets and banks on economic growth, this paper empirically evaluates this debate. The results emphasize the growth-enhancing role of stock markets and banks. Chile is clearly an outlier; it has less liquid stock markets and...

Is banking sector concentration associated with negative outcomes internationally? This paper finds that the answer is "no." Greater bank concentration is not strongly associated with negative outcomes in terms of financial sector development, industrial competition, political and legal system...

Is the financial system important for economic growth? One line of research argues that it is not; another line stresses the importance of the financial system in mobilizing savings, allocating capital, exerting corporate control, and easing risk management. Moreover, some theories provide a...

World stock markets are booming, and emerging stock markets account for a disproportionate share of this growth. Yet economists lack a common concept or measure of stock market development. This article collects and compares a broad array indicators of stock market and financial intermediary...