Financial development and institutional quality among emerging economies

Purpose This study examines how institutional quality influences variability in financial development among economies Sub-Saharan Africa (SSA). Design/methodology/approach Empirical estimations verifying various relationships are performed using the limited information maximum likelihood (LIML) estimation technique. Findings The results suggest that enhances pace of sub-region all things being equal. In a further micro-level analysis where components index examined separately, study’s effective governance, regulatory quality, rule law and accountability tend to have significant positive impact on sector development. Research limitations/implications policies geared towards improving governance institutions can augment SSA; governments policymakers therefore encouraged resource noted play roles for sector. Originality/value Compared related studies, this reorients existing paradigm, which emphasizes role variables economic growth discourse. authors’ empirical inquiry rather focuses structures influence regional dynamics. Specifically, differs from most macro-level studies found literature because it hitherto unexamined SSA.