The Impact of Pension Fund on Financial Development

In this paper, regression results of 55 countries or regions present that the size of pension fund can explain cross-country difference of financial development This is the first paper to consider simultaneously the impact of the legal origin, endowment and pension fund on the financial development The empirical results indicate that legal, endowment and pension fund views are not exclusive but compatible The implication of pension fund view is that although we cannot change legal origin and endowment, we can change pension policies and reform social security system Funded pension system that accumulates pension assets will promote financial development and economic growth