Simplice A, Asongu (2011): Democracy and stock market performance in developing countries.
Download (117Kb) | Preview
This is paper is a natural extension of Yang (2011) where-in democracy is not positively related to stock market development. We postulate that when moment conditions of stock market performance are accounted for, democracy improves financial markets in developing countries. Channels of democracy, polity and autocracy are instrumented with legal-origins, religious-legacies, income-levels and press-freedom qualities. As a policy implication democracies have important effects on both the degree of competition for public office and the quality of public policies that favor stock market performance in developing countries.
|Item Type:||MPRA Paper|
|Original Title:||Democracy and stock market performance in developing countries|
|Keywords:||Financial Markets; Government Policy; Political Economy; Development|
|Subjects:||P - Economic Systems > P4 - Other Economic Systems > P43 - Public Economics; Financial Economics
G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation
G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation
G - Financial Economics > G1 - General Financial Markets > G10 - General
P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy
|Depositing User:||Simplice Anutechia Asongu|
|Date Deposited:||20. Dec 2011 21:40|
|Last Modified:||15. Feb 2013 19:38|
Asongu, S.A., (2011a), “Law, finance, economic growth and welfare: why does legal origin matter?” MPRA Paper No.33868.
Asongu, S.A., (2011b), “Law, finance and investment: does legal origin matter?”, MPRA Paper No.34698.
Beck, T., Demirgüç-Kunt, A., & Levine, R.,(2003), “Law and finance: why does legal origin matter?”, Journal of Comparative Economics, 31, pp. 653-675.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R.W., (1997), “Legal Determinants of External Finance”, Journal of Finance, 52, pp. 1131-1150.
Mulligan, C.B., Gil, R., & Sala-i-Martin, X., (2004), “Do democracies have different public policies that on nondemocracries”, Journal of Economic Perspectives, 18, pp.51-74.
Stulz, R., M., & Williamson, R., (2003), “Culture, Openness and Finance”, Journal of Financial Economics, 70, pp. 313-349.
Yang, B., (2011), “Does democracy foster financial development? An empirical analysis”, Economic Letters, 112, pp.262-265.