Economics at your fingertips  

Growth, fluctuations and macroeconomic policies: Evidence from Arab open economies

Knani Ramzi, Asma Madouri () and Ali Chebbi

Economic Analysis and Policy, 2017, vol. 55, issue C, 132-146

Abstract: In this paper, we examine empirically the Macroeconomic policy impact on economic Growth in four Arab open economies over the period 1982–2013. The multivariate Markov switching approach is used to study the trade openness, financial development, financial integration, inflation and investment shock effects on growth according to the economic state. Our findings are (i) two economies were under persistent recession states for most of the time, (ii) macroeconomic policy do not lead to dynamic gains from trade in the largest Arab countries, (iii) inflationary pressure stimulates economic growth through domestic investment, (iv) financial Integration and the financial Development suggest that structural reforms in the banking sector and financial markets should be implemented, and (v) short term stabilization policies should be accommodated to the macroeconomic fluctuations. These results in terms of economic policy recommendations were not possible to be carried out outside the RBC framework.

Keywords: MSM-VAR models; Economic growth rate; Trade openness; Financial integration (search for similar items in EconPapers)
JEL-codes: E03 E32 E61 F15 F43 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-04-04
Handle: RePEc:eee:ecanpo:v:55:y:2017:i:c:p:132-146