Effects of Trade and Financial Liberalization on Financial Development (Case Study: MENA Countries)

Authors

Tarbiat Moddaress

Abstract

Financial sector is one of the most influential sectors in economic activities. Empirical and theoretical studies conducted in recent years have also confirmed the significant role of financial institutions in economic growth. Additionally, trade and financial liberalization policies have been particular concerned with strategic policies in developed and developing countries. According to dynamic panel data (DPD) and by means of generalized method of moments (GMM) during 1990 to 2008, this study has investigated effects of trade and financial liberalization on financial development of MENA member countries. Empirical results imply that trade liberalization and financial liberalization have influenced separately financial development, while due to inefficiency of financial institutions in providing appropriately financial resources, conducting both liberalization simultaneously has had an unexpected negative effect on the financial development in the region. JEL classification: F19, G29

Keywords

International Economics Studies
Volume 40, Issue 1
April 2012
Pages 57-66

Files

History

  • Receive Date: 14 June 2016
  • Revise Date: 29 April 2017
  • Accept Date: 14 June 2016

Share

How to cite

Statistics