Title: Do institutional quality, innovation and technologies promote financial market development?

Authors: Muhammad Asif Khan; Domicián Máté; Mohamued Elyas Abdulahi; Rabeea Sadaf; Muhammad Atif Khan; József Popp; Judit Oláh

Addresses: Yanshan University, Qinhuangdao, Hebei, China; Faculty of Management Sciences, University of Kotli, Kotli, Azad Jammu & Kashmir, Pakistan ' Department of Engineering Management and Entrepreneurships, University of Debrecen, Debrecen, Hungary ' Jigjiga University, Somali Region, Jigjiga, Ethiopia ' Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary ' Zhongnan University of Economics and Law, Wuhan, Hubei, China; Faculty of Management Sciences, University of Kotli, Kotli, Azad Jammu & Kashmir, Pakistan ' Hungarian University of Agriculture and Life Sciences, 2100 Gödöllő, Hungary; College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa ' Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary; College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa

Abstract: Over the last two decades, emerging markets have received much attention due to their substantial development. This study investigates the quality of financial institutions, and the innovative technological environment stimulated financial development in various (22) emerging markets from 2006 to 2017. The analyses are based on distinctive competitiveness pillars, and additional control variables from the World Economic Forum's reports and the World Bank's Development Indicators. Another novelty of this research is its investigation of the moderation effect of the quality of institutions on innovation and IC technologies. The empirical findings of linear and dynamic regressions (generalised method of moments) affirm that the interaction of innovation and technology with well-functioning institutions can accelerate the development of financial markets. Additionally, this study offers a few policy implications, so that these economies can improve competitiveness, in order to make emerging financial markets attractive and sustain their development in the long run.

Keywords: ICTs; institutional quality; innovation; financial market development.

DOI: 10.1504/EJIM.2024.136453

European Journal of International Management, 2024 Vol.22 No.3, pp.484 - 507

Received: 11 Mar 2019
Accepted: 19 Aug 2019
Published online: 02 Feb 2024 *

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