آزادسازي مالي و نقش آن در توسعه مالي با توجه به توسعه نهادي و قانوني (مقايسه كشورهاي كمتر توسعه يافته و نوظهور)

Financial Liberalization and Its Role on the Financial Development with Respect to the Legal and Institutional Environment (a Comparison ofLess Developed and Emerging Market Countries)

Monetary and banking crisis in some countries which had implemented financial liberalization policies, during the period of 80s and 90s, has shown the necessity of paying more attention to the institutional environment of the countries. In this research, we modeled the role of public (legal) institutions necessary for financial development in banking sector. We defined two levels of public institutions indexes; the public institution or index I, which is the first principal component of the control of corruption, law & order and bureaucracy quality; the public institution or index2, which is the first principal component of the last three components along with government stability & religious tensions. Through a panel data analysis, encompassing 92 countries (including 33 less developed, 38 emerging market and 21 industrialized countries) over the period of 20 years ranging from 1985 to 2005, we explore several dimensions of financial developments including the role of legal institutions. The results indicate that well-developed legal institutions are preconditions for financial openness to lead the banking sector development. The findings suggest that a sufficient institutional level is a pre-requisite for positive effect of financial openness on financial development and economic growth. Average level of public institution in Tran, is also lower than this threshold level. It means that the actual legal and institutional environment in Iran would not support a rapid financial liberalization policy.