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The purpose of this study is to have an in-depth understanding of the importance of the institutional environment for financial development in 43 Sub-Saharan African countries during the years 2004-2018. Using new institutional economic theory (NIE) we study how the four institutional factors Control of Corruption, Rule of Law, Political Stability and Absence of Violence, and Voice and Accountability affect financial development. We also survey how the effect of institutional factors varies when there are either high, medium or low levels of corruption. Empirical results show a positive linear relationship between all institutional factors and financial development. However, when corruption levels are high the correlation between institutional factors and financial development varies and has a weak linear relationship. Inferential statistics results from a fixed effect regression model with robust standard errors shows; when we control for the financial environment, Political Stability and Absence of Violence is the only indicator for the institutional environment that has a positive significant effect on financial development. We thereby conclude that the institutional environment, mostly political institutions, are important for financial development., Syftet med denna studie är att få en djupgående förståelse av institutionell miljö för finansiell utveckling i 43 Subsahariska afrikanska länder för åren 2004–2018. Med hjälp av den nya institutionella ekonomiska teorin undersöker vi hur de fyra institutionella faktorer Kontroll av Korruption, Rättsstat, Politisk Stabilitet och Frånvaro av Våld och Röst och Ansvarsskyldighet påverkar finansiell utveckling. Vi undersöker också hur effekten av institutionella faktorer varierar när det finns hög, medium eller låg nivå av korruption. Empiriskt resultat visar ett positivt linjärt samband mellan alla institutionella faktorer och finansiell utveckling. Däremot, när korruptions nivåerna är höga är korrelationen mellan institutionella faktorer och finansiell utveckling varierar och har ett svagt linjärt samband. Resultatet från inferentiell statistik med fixed-effektregressionsmodell med robust standardfel visar att; när vi kontrollerar för den finansiella miljön, kvarstår endast Politisk Stabilitet och Frånvaro av Våld som en indikator för institutionell miljö som har en positiv signifikant effekt på finansiell utveckling. Vi konstaterar därmed att institutionell miljö, särskilt politiska institutioner är viktiga för finansiell utveckling.

The purpose of this study is to have an in-depth understanding of the importance of the institutional environment for financial development in 43 Sub-Saharan African countries during the years 2004-2018. Using new institutional economic theory (NIE) we study how the four institutional factors Control of Corruption, Rule of Law, Political Stability and Absence of Violence, and Voice and Accountability affect financial development. We also survey how the effect of institutional factors varies when there are either high, medium or low levels of corruption. Empirical results show a positive linear relationship between all institutional factors and financial development. However, when corruption levels are high the correlation between institutional factors and financial development varies and has a weak linear relationship. Inferential statistics results from a fixed effect regression model with robust standard errors shows; when we control for the financial environment, Political Stability and Absence of Violence is the only indicator for the institutional environment that has a positive significant effect on financial development. We thereby conclude that the institutional environment, mostly political institutions, are important for financial development., Syftet med denna studie är att få en djupgående förståelse av institutionell miljö för finansiell utveckling i 43 Subsahariska afrikanska länder för åren 2004–2018. Med hjälp av den nya institutionella ekonomiska teorin undersöker vi hur de fyra institutionella faktorer Kontroll av Korruption, Rättsstat, Politisk Stabilitet och Frånvaro av Våld och Röst och Ansvarsskyldighet påverkar finansiell utveckling. Vi undersöker också hur effekten av institutionella faktorer varierar när det finns hög, medium eller låg nivå av korruption. Empiriskt resultat visar ett positivt linjärt samband mellan alla institutionella faktorer och finansiell utveckling. Däremot, när korruptions nivåerna är höga är korrelationen mellan institutionella faktorer och finansiell utveckling varierar och har ett svagt linjärt samband. Resultatet från inferentiell statistik med fixed-effektregressionsmodell med robust standardfel visar att; när vi kontrollerar för den finansiella miljön, kvarstår endast Politisk Stabilitet och Frånvaro av Våld som en indikator för institutionell miljö som har en positiv signifikant effekt på finansiell utveckling. Vi konstaterar därmed att institutionell miljö, särskilt politiska institutioner är viktiga för finansiell utveckling.

The new estimates of the Maddison Project show that GDP per capita ratio at purchasing power parity (ppp) between Bolivia and Finland has changed from 0.68 ca. 1850 to 0.16 in 2015; similarly, that between Chile and Norway from 0.65 to 0.28. The aim of this article is to present a review of the literature and available quantitative evidence to understand how these extreme differences became possible between countries with similarly enormous natural resource endowments. Specifically, the article seeks to: (a) identify some stylized facts that may help understand the divergence between Andean and Nordic countries; (b) identify key historical processes that explain the divergent effect of natural resource abundance in Andean and Nordic economies. In order to achieve these objectives, four topics are covered: GDPpc, population, trade and taxation. The analysis comprises three Nordic countries (Finland, Norway and Sweden) and three Andean countries (Bolivia, Chile and Peru) from the mid-Nineteenth Century to present day. The sample size, time span covered and thematic approach provide new evidence regarding previous work.

The new estimates of the Maddison Project show that GDP per capita ratio at purchasing power parity (ppp) between Bolivia and Finland has changed from 0.68 ca. 1850 to 0.16 in 2015; similarly, that between Chile and Norway from 0.65 to 0.28. The aim of this article is to present a review of the literature and available quantitative evidence to understand how these extreme differences became possible between countries with similarly enormous natural resource endowments. Specifically, the article seeks to: (a) identify some stylized facts that may help understand the divergence between Andean and Nordic countries; (b) identify key historical processes that explain the divergent effect of natural resource abundance in Andean and Nordic economies. In order to achieve these objectives, four topics are covered: GDPpc, population, trade and taxation. The analysis comprises three Nordic countries (Finland, Norway and Sweden) and three Andean countries (Bolivia, Chile and Peru) from the mid-Nineteenth Century to present day. The sample size, time span covered and thematic approach provide new evidence regarding previous work.

The new estimates of the Maddison Project show that GDP per capita ratio at purchasing power parity (ppp) between Bolivia and Finland has changed from 0.68 ca. 1850 to 0.16 in 2015; similarly, that between Chile and Norway from 0.65 to 0.28. The aim of this article is to present a review of the literature and available quantitative evidence to understand how these extreme differences became possible between countries with similarly enormous natural resource endowments. Specifically, the article seeks to: (a) identify some stylized facts that may help understand the divergence between Andean and Nordic countries; (b) identify key historical processes that explain the divergent effect of natural resource abundance in Andean and Nordic economies. In order to achieve these objectives, four topics are covered: GDPpc, population, trade and taxation. The analysis comprises three Nordic countries (Finland, Norway and Sweden) and three Andean countries (Bolivia, Chile and Peru) from the mid-Nineteenth Century to present day. The sample size, time span covered and thematic approach provide new evidence regarding previous work.

The new estimates of the Maddison Project show that GDP per capita ratio at purchasing power parity (ppp) between Bolivia and Finland has changed from 0.68 ca. 1850 to 0.16 in 2015; similarly, that between Chile and Norway from 0.65 to 0.28. The aim of this article is to present a review of the literature and available quantitative evidence to understand how these extreme differences became possible between countries with similarly enormous natural resource endowments. Specifically, the article seeks to: (a) identify some stylized facts that may help understand the divergence between Andean and Nordic countries; (b) identify key historical processes that explain the divergent effect of natural resource abundance in Andean and Nordic economies. In order to achieve these objectives, four topics are covered: GDPpc, population, trade and taxation. The analysis comprises three Nordic countries (Finland, Norway and Sweden) and three Andean countries (Bolivia, Chile and Peru) from the mid-Nineteenth Century to present day. The sample size, time span covered and thematic approach provide new evidence regarding previous work.

The new estimates of the Maddison Project show that GDP per capita ratio at purchasing power parity (ppp) between Bolivia and Finland has changed from 0.68 ca. 1850 to 0.16 in 2015; similarly, that between Chile and Norway from 0.65 to 0.28. The aim of this article is to present a review of the literature and available quantitative evidence to understand how these extreme differences became possible between countries with similarly enormous natural resource endowments. Specifically, the article seeks to: (a) identify some stylized facts that may help understand the divergence between Andean and Nordic countries; (b) identify key historical processes that explain the divergent effect of natural resource abundance in Andean and Nordic economies. In order to achieve these objectives, four topics are covered: GDPpc, population, trade and taxation. The analysis comprises three Nordic countries (Finland, Norway and Sweden) and three Andean countries (Bolivia, Chile and Peru) from the mid-Nineteenth Century to present day. The sample size, time span covered and thematic approach provide new evidence regarding previous work.

The new estimates of the Maddison Project show that GDP per capita ratio at purchasing power parity (ppp) between Bolivia and Finland has changed from 0.68 ca. 1850 to 0.16 in 2015; similarly, that between Chile and Norway from 0.65 to 0.28. The aim of this article is to present a review of the literature and available quantitative evidence to understand how these extreme differences became possible between countries with similarly enormous natural resource endowments. Specifically, the article seeks to: (a) identify some stylized facts that may help understand the divergence between Andean and Nordic countries; (b) identify key historical processes that explain the divergent effect of natural resource abundance in Andean and Nordic economies. In order to achieve these objectives, four topics are covered: GDPpc, population, trade and taxation. The analysis comprises three Nordic countries (Finland, Norway and Sweden) and three Andean countries (Bolivia, Chile and Peru) from the mid-Nineteenth Century to present day. The sample size, time span covered and thematic approach provide new evidence regarding previous work.

This article presents per capita GDP and income distribution estimates for preindustrial Poland. It is based on a social table for the Voivodeship of Cracow in 1578. Our evidence indicates that income in Poland was distributed more equally than in contemporary Holland. However, the extraction rate was much higher than in the North Sea area. Furthermore, income inequality in the countryside of the Voivodeship was higher than inequality in Cracow. This can be explained by the demesne economy based on serfdom that was prevalent in agriculture. Using trends in real wages and urbanisation, we also project Polish GDP forwards and backwards in time. Our results indicate that Polish per capita GDP was below that of Western Europe as early as the fifteenth century. This gap persisted despite moderate growth of the Polish economy in the sixteenth century. In the seventeenth century, Poland impoverished and became even poorer than Asian economies for which similar estimates are available. Poland recovered slightly in the eighteenth century but continued to lag behind Western Europe.

This article presents per capita GDP and income distribution estimates for preindustrial Poland. It is based on a social table for the Voivodeship of Cracow in 1578. Our evidence indicates that income in Poland was distributed more equally than in contemporary Holland. However, the extraction rate was much higher than in the North Sea area. Furthermore, income inequality in the countryside of the Voivodeship was higher than inequality in Cracow. This can be explained by the demesne economy based on serfdom that was prevalent in agriculture. Using trends in real wages and urbanisation, we also project Polish GDP forwards and backwards in time. Our results indicate that Polish per capita GDP was below that of Western Europe as early as the fifteenth century. This gap persisted despite moderate growth of the Polish economy in the sixteenth century. In the seventeenth century, Poland impoverished and became even poorer than Asian economies for which similar estimates are available. Poland recovered slightly in the eighteenth century but continued to lag behind Western Europe.