EconPapers    
Economics at your fingertips  
 

Financial Market Integration and Macroeconomic Volatility in the MENA Region: An Empirical Investigation

Simon Neaime ()

Review of Middle East Economics and Finance, 2005, vol. 3, issue 3, 59-83

Abstract: Using panel data regression models this study examines empirically the impact of regional and international financial integration on macroeconomic volatility in the developing economies of the MENA region over the period 1980–2002. Our empirical results indicate that financial openness is associated with an increase in consumption volatility, contrary to the notions of improved international risk-sharing opportunities through financial integration. Our empirical findings emphasize the role of sound fiscal and monetary policies in driving macroeconomic volatility. In regard to structural reforms, the development of the domestic financial sector is critical, as a high degree of financial sector development is significantly associated with lower macroeconomic volatility. We argue that enhancing regional financial integration might constitute a venue to circumvent the vulnerability of the small open MENA economies to external shocks, and a mean to enhance consumption smoothing opportunities, as well as international financial integration.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.2202/1475-3693.1045 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:rmeecf:v:3:y:2005:i:3:n:5

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/rmeef

DOI: 10.2202/1475-3693.1045

Access Statistics for this article

Review of Middle East Economics and Finance is currently edited by Ghassan Dibeh

More articles in Review of Middle East Economics and Finance from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2022-09-21
Handle: RePEc:bpj:rmeecf:v:3:y:2005:i:3:n:5