Does central bank transparency converge across the world? Evidence from a club convergence perspective

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We study whether there is any evidence of convergence of central bank transparency in 112 countries from 1998 to 2019 using Phillips and Sul panel club convergence technique. The results don't find evidence of a single club convergence of central bank transparency. Instead, our result reveals four clubs converging to their unique transition path. Further, we found that countries with high financial depth, trade openness, central bank independence, effective government, and inflation increase the likelihood of convergence to a higher club 1. Our findings have policy implications for central bankers and developing economies struggling with low transparency.