Skip to main content
×
Home
    • Aa
    • Aa

Political institutions and financial cooperative development

  • AMR KHAFAGY (a1)
Abstract
Abstract

This paper analyses the influence of political institutions on the development of financial cooperatives. It proposes a political economy theory where autocratic regimes deliberately oppose the development of a well-functioning financial cooperative sector to maintain their political influence, and prevent the formation of strong pressure groups that can threaten the current political status quo and reduce the governing elites’ economic benefits from underdeveloped and exclusive financial sector. Using panel data from 65 developing countries from 1995–2014, the results show that democracy, political rights and civil liberties promote financial cooperative development. These results are robust in controlling for endogeneity as well as other economic and institutional factors.

Copyright
Corresponding author
*Email: amfkhafagy@gmail.com
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

D. Acemoglu and J. A. Robinson (2005), Economic Origins of Dictatorship and Democracy, New York: Cambridge University Press, pp. 4863.

J. R. Barth , G. Caprio and R. Levine (2006), Rethinking Bank Regulation: Till Angels Govern, New York: Cambridge University Press, pp. 278305.

G. S. Becker (1983), ‘A Theory of Competition Among Pressure Groups for Political Influence’, The Quarterly Journal of Economics, 98(3): 371400.

A. Bentley (1908), ‘The Process of Government: A Study of Social Pressures’, Chicago: The University of Chicago Press, p. 269.

S. Claessens and L. Laeven (2003), ‘Financial Development, Property Rights, and Growth’, The Journal of Finance, 58(6): 24012436.

C. Cuevas and K. Fischer (2006), Cooperative Financial Institutions: Issues in Governance, Regulation, and Supervision, (No. 82), Washington: World Bank Publications.

S. Girma and A. Shortland (2008), ‘The Political Economy of Financial Development’, Oxford Economic Papers, 60(4): 567596.

J. Jütting and J. R. de Laiglesia (eds.), (2009), Is Informal Normal?: Towards More and Better Jobs in Developing Countries, Paris: Development Centre of the Organisation for Economic Co-operation and Development.

R. La Porta , F. Lopez-de-Silanes , A. Shleifer and R. Vishny (1999), ‘The Quality of Government’, Journal of Law, Economics, and Organization, 15(1): 222279.

V. Nienhaus (1993), ‘The Political Economy of Development Finance’, Managerial Finance, 19(7): 820.

D. C. North (1990), Institutions, Institutional Change and Economic Performance, New York: Cambridge University Press.

M. Olson (1993), ‘Dictatorship, Democracy and Development’, American Political Science Review, 87(3): 567–76.

M. Pagano and P. Volpin (2001), ‘The Political Economy of Finance’, Oxford Review of Economic Policy, 17(4): 502519.

A. Périlleux , A. Vanroose and B. D'Espallier (2016), ‘Are Financial Cooperatives Crowded Out by Commercial Banks in the Process of Financial Sector Development?’, Kyklos, 69(1): 108134.

R. G. Rajan and L. Zingales (2003), ‘The Great Reversals: The Politics of Financial Development in the Twentieth Century’, Journal of Financial Economics, 69(1): 550.

D. B. Truman (1958), The Governmental Process. Political Interests and Public Opinion, New York: Alfred A. Knopf, pp. 3335.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Institutional Economics
  • ISSN: 1744-1374
  • EISSN: 1744-1382
  • URL: /core/journals/journal-of-institutional-economics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Full text views

Total number of HTML views: 5
Total number of PDF views: 73 *
Loading metrics...

Abstract views

Total abstract views: 418 *
Loading metrics...

* Views captured on Cambridge Core between 2nd November 2016 - 20th September 2017. This data will be updated every 24 hours.