Efficient markets boost GDP and resilience, but hurt unemployment rates.
Market efficiency is crucial for a country's economic performance, especially for small states like Malta. A study created a composite index to measure market efficiency in goods, labor, and financial markets for 26 European countries. The results show that countries with higher market efficiency tend to have higher GDP per capita and economic resilience. Additionally, labor market efficiency is linked to lower unemployment rates. Further research is needed to understand the relationships between these variables.