{
  "title": "Do Financial Sector Reforms Lead to Financial Development? Evidence from a New Dataset",
  "publication": "IMF Working Papers, December 1, 2008",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/do-financial-sector-reforms-lead-to-financial-development-evidence-from-a-new-dataset-22486",
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  "summary": "This paper studies whether the policies that, over the past decades, liberalized bankingsystems around the world have resulted in deeper credit markets. To measure banking sectorreforms we use a new index that tracks policy changes in five separate areas for 91 countriesover 1973-2005.",
  "sections": [
    {
      "heading": "Main research question and approach",
      "content": "- Research question: Whether policies that liberalized banking systems over past decades resulted in deeper credit markets.\n- Measurement approach:\n  - A new banking reform index tracking policy changes in five separate areas.\n  - Coverage: 91 countries over 1973-2005."
    },
    {
      "heading": "Key findings",
      "content": "- Reforms have led to financial deepening, but only in countries with institutions that place checks and balances on political power.\n- The authors interpret this as evidence of a complementarity between financial sector reforms and political institutions that protect property rights.\n- Other country characteristics do not seem to significantly influence the effect of banking reforms on financial development."
    },
    {
      "heading": "Data and methods (summary)",
      "content": "- New index: policy changes in five separate areas of banking sector reform (index construction details not reproduced on this page).\n- Sample size and period explicitly reported: 91 countries, 1973-2005."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Financial sector reforms alone may be insufficient to deepen credit markets.\n- Reforms are most effective when combined with institutional checks and balances that protect property rights.\n- Strengthening political institutions that constrain power may be a necessary complement to banking liberalization for financial development to occur."
    },
    {
      "heading": "Key statistics and publication metadata (as reported on the page)",
      "content": "- Sample: 91 countries.\n- Sample period: 1973-2005.\n- Number of policy areas in reform index: five separate areas.\n- Pages: 42.\n- Series/Issue: Working Paper No. 2008/265.\n- DOI: https://doi.org/10.5089/9781451871234.001\n- Publication date on page: December 1, 2008.\n\nSource: Do Financial Sector Reforms Lead to Financial Development? Evidence from a New Dataset, IMF Working Paper No. 2008/265\n\n---\n\n Content in this bundle\n\n- wp08265\n  - wp08265 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp08265 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/do-financial-sector-reforms-lead-to-financial-development-evidence-from-a-new-dataset-22486"
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    "Authors: Thierry Tressel, Enrica Detragiache",
    "Published: December 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451871234.001",
    "Research question: Whether policies that liberalized banking systems over past decades resulted in deeper credit markets.",
    "Measurement approach:",
    "Reforms have led to financial deepening, but only in countries with institutions that place checks and balances on political power.",
    "The authors interpret this as evidence of a complementarity between financial sector reforms and political institutions that protect property rights.",
    "Other country characteristics do not seem to significantly influence the effect of banking reforms on financial development.",
    "New index: policy changes in five separate areas of banking sector reform (index construction details not reproduced on this page).",
    "Sample size and period explicitly reported: 91 countries, 1973-2005.",
    "Financial sector reforms alone may be insufficient to deepen credit markets.",
    "Reforms are most effective when combined with institutional checks and balances that protect property rights.",
    "Strengthening political institutions that constrain power may be a necessary complement to banking liberalization for financial development to occur.",
    "Sample: 91 countries.",
    "Sample period: 1973-2005.",
    "Number of policy areas in reform index: five separate areas.",
    "Pages: 42.",
    "Series/Issue: Working Paper No. 2008/265.",
    "DOI: https://doi.org/10.5089/9781451871234.001",
    "Publication date on page: December 1, 2008.",
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