Financial Development and Economic Growth in the Middle East

Nasri Harb () and Mouawiya Al-Awad
Authors registered in the RePEc Author Service: Mouawiya Al Awad

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the linkages between financial development and economic growth in the Middle East using newly developed methods of panel cointegration along with the popular time series methodologies such as the Johansen's cointegration, Granger causality, and the variance decompositions. The results indicate that, in the long run financial development and economic growth may be related to some level. In the short run, the panel causality tests point to real economic growth as the force that drives changes in financial development while individual countries' causality tests fail to give a clear evidence of the direction of causations.

Keywords: Financial Development; Economic Growth; Panel Cointegration (search for similar items in EconPapers)
JEL-codes: G18 G28 O16 (search for similar items in EconPapers)
Date: 2005-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

Published in Applied Financial Economics 15.15(2005): pp. 1041-1051

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Journal Article: Financial development and economic growth in the Middle East (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13605

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