Law, Politics, And Finance

The law and finance view stressesthat differentlegal traditions emphasizeto differingdegreesthe rightsof individualinvestorsrelativeto the state,which has important ramificationsfor financialdevelopment. The dynamiclaw and finance view augmentsthe law and financeview,stressingthat legaltraditions also differ in their abilityto adapt to changingconditions.The politics and financeview rejectsthe central role of legal tradition,stressinginsteadthat politicalfactors shape financialdevelopment. The endowmentview arguesthat the mortalityrates of Europeansettlers as they colonizedvariousparts of the globe influencedthe institutionsthey initiallycreated, which has had enduringeffectson institutionstoday.