Impact of Law Enforcement on Financial Development across Chinese Regions
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| Title | Impact of Law Enforcement on Financial Development across Chinese Regions
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| Author | Luo Yu,He Qing and Xue Chang |
| Organization | Renmin University of China; Renmin University of China; Chinese University of Hong Kong |
| Email | luoyu2011@ruc.edu.cn |
| Key Words | Law Enforcement；Financial Development；Secretary of the Political and Legislative Affairs Committee of the CPC；Instrumental Variable |
| Abstract | We study the impact of the law enforcement on financial development across Chinese regions. Using the legal education background of the secretaries of the Political and Legislative Affairs Committee of the Committee of the Communist Party of China as the instrumental variable, we isolate the causal effect of legal enforcement on financial development. We find that better legal enforcement has significantly improved the development of credit market, but hasn’t the similar impacts on the marketization of financial industry and stock market development. Moreover, we find a stronger effect of legal enforcement on financial development during the sub-sample period from 2003 afterwards. |
| Serial Number | WP1082 |
| Time | 2016-07-22 |
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