This paper studies how international capital flows are transmitted from the banking sector to the real sector in a bank-based open economy. The analysis centers on the role of institutions and domestic policies in reducing moral hazard problems and on determining the net benefit of international...

The central point of this paper is to present the results of comparative case study research concerning the impact of the interplay between formal and informal institutions in the corporate governance systems (CGS) of Central and Eastern European Countries (CEEC). Particular focus was put on the...

To study how financial development depends on trade openness and different types of institutions, we present a political economy model in which the elite can repress the financial market at some cost. The elite can persuade the government to set an interest rate ceiling, and it can then channel...

Political economy theories of financial development argue that in countries where a narrow elite controls political decisions, financial development may be obstructed to deny access to finance to potential competitors. We use panel data on developed and developing countries from 1975ndash;2000...