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Institutional Quality And Financial Stress: Experience From Emerging Country

Author

Listed:
  • ATI Abdessatar

    (Jazan Universty, Kingdm of Saoudi Arabia)

  • BEN JAZIA Rachida

    (Tunis El Manar Univrsity (URMOFIB)/ CNAM Paris (LIRSA))

Abstract

The purpose of this study is to assess the institutional determinants of financial stress. In particular, we focus on the link between institutional quality and financial instability as measured by the financial stress index. The sample under-study covers the period 1996-2011 for a panel of 21 developping countries. The retreat in MCG showed that the quality of institutions enunciating the freedom of expression and accountability, political stability and anti- violence, government effectiveness, regulatory quality and the rule of the law, appeared statistically in significance with the index of financial stress. Then, a better institutional quality will help bring down the financial tensions and stabilize financial markets. A set of institutional reforms will be urgently requested.

Suggested Citation

  • ATI Abdessatar & BEN JAZIA Rachida, 2013. "Institutional Quality And Financial Stress: Experience From Emerging Country," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 8(3), pages 5-20, December.
    • Handle: RePEc:blg:journl:v:8:y:2013:i:3:p:5-20
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    References listed on IDEAS

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