Financial Development, Financial Instability and Economic Growth: The Case of Maghreb Countries

Khattab Ahmed, Mathieu Juliot Mpabe Bodjongo and Ihadiyan Abid
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Khattab Ahmed: Department of Economics, Abdelmalek Essaadi University, Tangier, Morocco,
Ihadiyan Abid: Department of Economics, Abdelmalek Essaadi University, Tangier, Morocco.

International Journal of Economics and Financial Issues, 2015, vol. 5, issue 4, 1043-1054

Abstract: The objective of this article consists in examining the interactions between the financial development, financial instability and economic growth in the Maghreb countries. The analysis covering the period of 1995-2013 relates to a sample of five countries of the region. By using the World Bank Data (2013) and the Heritage Foundation Data (2013), the panel vector autoregressive model estimation revealed that: (a) The financial development has positive effects on itself but a negative impact on the financial instability as well as a combined impact on the economic growth, (b) the financial instability has a negative impact on the financial development, a positive impact on itself and a combined effect on the economic growth, (c) The economic growth promotes the financial development and the financial instability; it has also a positive effect on itself, (d) finally, the financial liberalization in a less corrupt environment promotes the financial development.

Keywords: Financial Development; Financial Instability; Economic Growth (search for similar items in EconPapers)
JEL-codes: E44 G10 O16 O50 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2015-04-26

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