This study examines the effect of dynamic legal tradition on financial development. In line with the theory of “dynamic legal tradition” proposed by Beck et al. (Law, politics, and finance. World Bank, Washington, DC, 2001), political variables are employed in the analysis to assess whether...

We find that an expansion of credit has a positive effect on per capita output growth only up to a point. Beyond this threshold the impact of finance on growth is not statistically significant anymore. We show, however, that the estimated non-linear relationship may stem from the omission of...

This study examines the impact of workers¡¯ remittances on financial development in 32 Sub-Sahara Africa countries. In this paper we employ dynamic panel GMM model to study the potential effect of remittances on financial development with emphasis on financial intermediation. While the study...

This paper studies the impact of remittances on investment. Workers’ remittances to developing countries have grown to be an important source of financing, amounting to around $300 billion a year. The funds are used for both consumption and investment in the home countries of the migrants. The...

Despite an increasing focus on the nexus between finance and growth, little is known about the growth effect of financial development in emerging markets. Financial development is generally considered a multifaceted phenomenon. Unlike previous studies, which use a static panel model or focus on...

Most US credit card holders revolve high-interest debt, often combined with substantial (i) asset accumulation by retirement, and (ii) low-rate liquid assets. Hyperbolic discounting can resolve only the former puzzle (Laibson et al., 2003). Bertaut and Haliassos (2002) proposed an...

This paper studies the relationship between the development of stock markets and income inequality. It shows that introducing equity financing in an economy with safe and risky sectors, where debt is initially the only financial instrument and where market imperfections generate credit rationing...