<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper examines how fiscal transparency is linked to bank development. It also hypothesizes that the effect is mediated by reasonable channel(s). Drawing upon a panel dataset of emerging and developing economies, we find that fiscal transparency is positively related to the private credit and to the ratio of liquid assets, implying that more transparent policies enhance bank development. Our panel regressions and the mediation analysis also suggest that the effect of fiscal transparency on private credit is significantly transmitted through the control of corruption, while it has a direct effect on the ratio of liquid assets.</p>
</abstract>

This paper examines how fiscal transparency is linked to bank development. It also hypothesizes that the effect is mediated by reasonable channel(s). Drawing upon a panel dataset of emerging and developing economies, we find that fiscal transparency is positively related to the private credit and to the ratio of liquid assets, implying that more transparent policies enhance bank development. Our panel regressions and the mediation analysis also suggest that the effect of fiscal transparency on private credit is significantly transmitted through the control of corruption, while it has a direct effect on the ratio of liquid assets.

Does Fiscal Transparency Matter for Bank Development? A Lookup on Emerging and Developing Countries

and Social and Economic Policy Analysis Laboratory

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

This paper examines how fiscal transparency is linked to bank development. It also hypothesizes that the effect is mediated by reasonable channel(s). Drawing...

Does Fiscal Transparency Matter for Bank Development? A Lookup on Emerging and Developing Countries

Published Online: Jan 19, 2023

Page range: 107 - 148

Received: Jul 19, 2021

Accepted: Nov 11, 2021

DOI: https://doi.org/10.2478/jcbtp-2023-0006

Keywords
fiscal transparency, bank development, dynamic panel, mediation, bootstrapping

© 2023 Emna Trabelsi, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Does Fiscal Transparency Matter for Bank Development? A Lookup on Emerging and Developing Countries

Published Online: Jan 19, 2023

Page range: 107 - 148

Received: Jul 19, 2021

Accepted: Nov 11, 2021

DOI: https://doi.org/10.2478/jcbtp-2023-0006

Keywordsfiscal transparency, bank development, dynamic panel, mediation, bootstrapping

© 2023 Emna Trabelsi, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
fiscal transparency, bank development, dynamic panel, mediation, bootstrapping