Liberalization, crisis and growth in MENA region: Do institutions matter?

Houssem Rachdi, Abdelaziz Hakimi and Helmi Hamdi

Journal of Policy Modeling, 2018, vol. 40, issue 4, 810-826

Abstract: The main purpose of this study is to investigate the interaction between financial liberalization, banking crisis and economic growth by taking into consideration the role of institutions. Our sample covers 15 Middle East and North African observed during the period 2000–2013. Using a dynamic panel data framework, our findings reveal that financial liberalization contributed to improve economic growth in MENA countries while banking crisis had harmful effects on MENA economies. The quality of institutions did not have a clear impact except for rule and order and democratic institution. These results have important policy implications. To grow output and avoid the occurrence of banking crisis, MENA countries should reinforce their institutions quality by adopting good practice of governance and regulation.

Keywords: Economic growth; Financial liberalization; Institutions; MENA countries (search for similar items in EconPapers)
JEL-codes: E44 F36 G21 G28 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:40:y:2018:i:4:p:810-826

DOI: 10.1016/j.jpolmod.2018.05.001

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