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.