Do Transparency and Anti-Monopoly Policies Matter for Financial Development? Evidence from a Panel ARDL-PMG Approach

We examine the effect of macroeconomic stability, transparent government policies, and anti-monopoly policies on financial market development using extensive panel data 113 countries over period 2007 to 2017. By applying ARDL-PMG controlling for GDP, trade openness, size, our findings reveal that stability fosters in both developing developed countries. Effective transparency facilitate link between long-run. Furthermore, we find curb corruption bureaucratic power improve markets short-run. Still, a higher level competition is more vulnerable information asymmetry adverse selection