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Does democracy foster financial development? An empirical analysis

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  • Yang, Benhua

Abstract

This paper examines whether democracy promotes financial development. While cross-section results show a positive association between democracy and bank development, this relationship disappears in panel regressions. The data also reveals that democracy is not positively related to stock market development.

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  • Yang, Benhua, 2011. "Does democracy foster financial development? An empirical analysis," Economics Letters, Elsevier, vol. 112(3), pages 262-265, September.
    • Handle: RePEc:eee:ecolet:v:112:y:2011:i:3:p:262-265
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