FINANCIAL DEVELOPMENT and INSTITUTIONS: A LITERATURE REVIEW

Among the causes of differences in financial development, “institutions†have received considerable attention in recent years. In this context, the question of which institutions promote financial development seems particularly important. Therefore, the theories that explain the relationships between formal or informal institutions (law systems, trade openness, trust, social capital, political groups, etc.) and financial development have been introduced in recent literature. The aim of this paper is to present a general conceptual framework that will provide a better understanding the effects of institutional environment on the financial development.Financial Development, Institutions, Trade openness, Social capital, Trust, Law and Finance.