“Over the past two decades, a series of influential papers in economics and finance have found institutions to be powerful predictors of economic and financial development that exert persistent effects over time. One of the most prominent examples of these persistence studies is the law and finance hypothesis, which argues that a country’s legal origin is a powerful predictor of its present investor protection laws and its financial development (La Porta et al, 1998). But because few studies have explored whether correlations between institutions and economic and financial outcomes hold in the past, we cannot be certain the alleged persistence of the effects of legal origins passes the test of history …” (more)
Christopher Coyle, Aldo Musacchio and John D Turner, Oxford Business Law Blog, 17 October.
First posted 2019-10-17 05:56:14
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