Economic policy uncertainty and financial system efficiency.

Economic policy uncertainty (EPU) adversely affects financial system functioning with potentially critical repercussions for economies and corporations worldwide. Financial system efficiency (FSE) has a vital influence on fostering optimal economic growth and development; however, the impact of EPU on FSE remains under-explored. This study investigates the effect of EPU on FSE along with its components financial institution efficiency (FIE) and financial market efficiency (FME).

Role of institutions in promoting finance in emerging markets: A panel data analysis.

Differences in institutions have garnered much attention in recent years as one of the primary reasons for long-term economic performance, and a vast corpus of theoretical and empirical research demonstrates that financial development can have a substantial impact on economic and financial performance. In fast-growing emerging markets, the demand for financial services has considerably increased, which amplified the need for an efficient regulatory framework to deal with the sensitive nature of financial activities. Surprisingly, the existing literature on the impact of institutions and finance is focused on developed economies, while emerging markets are rarely focused on.