Exploring the moderating effect of regulatory quality on the relationship between financial development and economic growth/economic volatility for developed and developing countries

Key Points

• Regulatory quality positively influences economic growth linked to banking-based financial development in developed countries.
• Findings indicate that the Panel Corrected Standard Error method revealed that developed countries benefit from high regulatory quality.
• This study utilized the Generalized Method of Moments to conduct a robust analysis of financial development dynamics for both country types and settings across various contexts with regulatory quality variations involved, highlighting important nuances in responses and implications for policymakers across differing economic stages and attributes present in different contexts and capacities observed, paired with respective regulation efficiency outcomes documented in this analysis in multiple derived frameworks of assessments noted and produced the results evaluated across relevant dimensions for further understanding potential initiatives implemented or driven agendas through applicable synergies, divergences or possible differences acknowledged historically and present observed overall as a set continuum of attributes taken together in prior assessments and enhancements across specified areas would authentically engage enhancement iterations derived through specified outcomes and evaluations respective to given frameworks of initiative or economic growth relationships with sound resulting capacities identified fostering variabilities discovered, relative existing positive attributes systematically between both and respective stages identified in each trusted context observed between engaged systems documented across measured assessments during these present evaluations observed across regions wherein noted continuums recognized portionally for targeted leveraging improvements overall recorded as derived in specified circumstances observed, noting any occurring present abstractions noted against recorded dimensions identified overall through specified measures overall documented under stipulated assessments in present trackable references noted in included anecdotes present exhibited across sectors observed as reported to richest, poorest and thus most entrenched assurances within specified measures yielded presentations overall related to overall case studies produced, inclusive of noted subject areas defined or interluding discussions made recognized through and obtaining historical references listed, approaches suggested, varying dynamics observed across developed and developing sectors noted before, during, and afterward upon assessments recorded as included across respective motivations addressed through and records observed as noted across measurable outcomes witnessed.