Answers are grounded in this paper and cite their sources.
Why do some countries have growth-enhancing financial systems, while others do not? Why have some countries developed the necessary investor protection laws and contract-enforcement mechanisms to support financial institutions and markets, while others have not? This paper reviews existing research on the role of legal institutions in shaping financial development.
No takes yet. Share an insight, caveat, or question.
Beck et al. (2004) studied this question.