Development and Governance in the Ex-Soviet Union: An Empirical Inquiry

Examining the nexus between governance and financial inclusion in the Nordic-Baltic region: Bank stability as a moderator

“…Collectively the finding is consistent with the hypothesis that in countries with higher economic globalization, good governance has a positive and significant effect on economic growth [ 75 ]. On the contrary, it differs from earlier findings which found no correlation between economic growth and good governance in some ex-Soviet countries among which are Estonia, Latvia, and Lithuania [ 21 ]. The authors however noted that correlation does not represent causality and further test is required.…”

“…This implies control of corruption, government efficiency, political stability, regulatory quality, rule of law, and voice of accountability independently are necessary tools to foster FI in this jurisdiction. This result is largely in line with the findings of Santagata et al [ 21 ] who observed that countries like Estonia, Latvia, and Lithuania rank high in economic prosperity and good governance among the ex-Soviet Union countries. Elsewhere, it has been reported that Norway, Sweden, and Denmark use good governance as a criterion when deciding how to disburse aid to needy countries [ 61 ].…”

“…This analysis will serve as a reminder to institutions charged with the implementation of laws to be proactive in the execution of their responsibilities, especially in creating an inclusive financial ecosystem. (ii) Most of the studies on governance in the Nordic-Baltic region generally focused on marine management [ [16] , [17] , [18] , [19] ]; crises management [ 20 ]; and economic development [ 21 ]. (iii) Studies that investigate financial development around Europe and elsewhere generally focused on the nexus of financial development and energy use [ 22 , 23 ], the relationship between bank stability and FI [ 12 , 24 ], and banking supervision and bank stability [ [25] , [26] , [27] ].…”