Discussion Paper No
نویسندگان
چکیده
Financial development is vulnerable to social conflict. Conflict reduces the demand for domestic currency as a medium of exchange and a store of value. Conflict also leads to poor quality governance, including weak regulation of the financial system, thereby undermining the sustainability of financial institutions. Conflict therefore reduces the social return to financial liberalization and other financial-sector reforms. This paper presents a theoretical model integrating the effects of conflict and financial liberalization, and then tests the model on data for 79 countries. Using an explanatory variable that measures the intensity of conflict (from low to high) the results show that conflict significantly reduces financial development, and that this negative effect increases as conflict intensifies. The paper concludes that conflict reduction is essential if financial reform is to have its full benefit for development.
منابع مشابه
MTID DISCUSSION PAPER NO. 74 PRODUCER SUPPORT ESTIMATES (PSEs) FOR AGRICULTURE IN DEVELOPING COUNTRIES: MEASUREMENT ISSUES AND ILLUSTRATIONS FROM INDIA AND CHINA
MTID Discussion Papers contain preliminary material and research results, and are circulated prior to a full peer review in order to stimulate discussion and critical comment. It is expected that most Discussion Papers will eventually be published in some other form, and that their content may also be revised. MTID Discussion Papers contain preliminary material and research results, and are cir...
متن کاملAmerican Institute of Mining and Metallurgical Engineers
Technical Publication No. 2313 Class E, Metals Technology, January 1948 DISCUSSION OF THIS PAPER IS INVITED. It should preferably be presented by the contrihutqr in person at the New York Meeting. February 1948. when an abstract of the paper will be read. If this is imposs~ble, discussion in writing (a copies) may be sent to the Secretary. American Institute of Mining and Metallurgical Engrneer...
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