Financial Liberalization, Banking Crisis and Economic Growth in MENA Region: Do Institutions Matter?

Houssem Rachdi, Abdelaziz Hakimi and Helmi Hamdi

MPRA Paper from University Library of Munich, Germany

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 ten Middle East and North African (MENA henceforth) observed during the period 1990-2013. Using a dynamic panel data framework, our findings reveal that financial liberalization increases the likelihood of systemic banking crisis at the initial stages of financial reform, but there is a threshold level after which financial liberalization can have a positive impact on economic growth by reducing the probability of crisis. The results also suggest that all indicators of institutions play a less significant role in economic growth.

Keywords: Economic growth; financial liberalization; institutions and MENA countries (search for similar items in EconPapers)
JEL-codes: E44 F36 G21 G28 (search for similar items in EconPapers)
Date: 2015-05-23
New Economics Papers: this item is included in nep-ara, nep-ban, nep-fdg and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/64562/1/MPRA_paper_64562.pdf original version (application/pdf)

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:pra:mprapa:64562

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().