Advanced Search
MyIDEAS: Login to save this article or follow this journal

Financial Openness and Financial Development in the South Mediterranean Sea Countries: Institutional Approach and Calculation ofm Development Thresholds

Contents:

Author Info

  • Samouel BEJI
Registered author(s):

    Abstract

    The central theme of the paper is the financial development issue in a context of financial globalization for the south Mediterranean sea (SMS) countries. The choice of this theme is motivated by the importance of the economic development and the growth in these countries, who are usually the subject of political instabilities, and are distinguished by weak political institutions. Our aim in this paper is to point out that the financial openness in the conditions of the SMS countries would be prejudicial for its financial development. In contrast, the financial openness would be beneficial for the financial development in the presence of the adequate legal and institutional development. This is our main hypothesis. To do so, we used an econometric panel error-correction model with nonoverlapping data for the period 1980-2005. The model links financial development indicators to institutional and legal indicators, in order to calculate institutional thresholds. The actual state of the institutional and legal environment in the region would not allow them to ameliorate the efficiency of their financial systems. Then, it's not recommended, if we trust on the results founded, to operate a financial openness. Instead of opening the "financial frontiers", it's better to prepare this transition by an improvement of the institutional and the legal environment.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ersj.eu/repec/ers/papers/07_34_p11.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by European Research Studies Journal in its journal European Research Studies Journal.

    Volume (Year): X (2007)
    Issue (Month): 3-4 ()
    Pages: 107-

    as in new window
    Handle: RePEc:ers:journl:v:x:y:2007:i:3-4:p:107-

    Contact details of provider:
    Web page: http://www.ersj.eu/

    Related research

    Keywords: financial development; institutional development; financial globalization; capital account liberalization; sequence of liberalization;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Levine, Ross, 1996. "Financial development and economic growth : views and agenda," Policy Research Working Paper Series 1678, The World Bank.
    2. Ferrary, Michel, 2003. "Trust and social capital in the regulation of lending activities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(6), pages 673-699.
    3. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2000. "The Role of Social Capital in Financial Development," CRSP working papers 511, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
    4. Caprio, Gerard & Laeven, Luc & Levine, Ross, 2004. "Governance and bank valuation," Policy Research Working Paper Series 3202, The World Bank.
    5. Greenwood, J. & Jovanovic, B., 1988. "Financial Development, Growth, And The Distribution Of Income," RCER Working Papers 131, University of Rochester - Center for Economic Research (RCER).
    6. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, . "Law and Finance," Working Paper 19451, Harvard University OpenScholar.
    7. Arturo Galindo & Alberto Chong & César Calderón, 2001. "Structure and Development of Financial Institutions and Links with Trust: Cross-Country Evidence," Research Department Publications 4251, Inter-American Development Bank, Research Department.
    8. Bencivenga, V.R. & Smith, B.D., 1988. "Some Consequences Of Credit Rationing In An Endogenous Growth Model," RCER Working Papers 159, University of Rochester - Center for Economic Research (RCER).
    9. Asli Demirgüç-Kunt & Vojislav Maksimovic, 1998. "Law, Finance, and Firm Growth," Journal of Finance, American Finance Association, vol. 53(6), pages 2107-2137, December.
    10. Menzie D. Chinn & Hiro Ito, 2002. "Capital Account Liberalization, Institutions and Financial Development: Cross Country Evidence," NBER Working Papers 8967, National Bureau of Economic Research, Inc.
    11. Arestis, Philip & Demetriades, Panicos O, 1997. "Financial Development and Economic Growth: Assessing the Evidence," Economic Journal, Royal Economic Society, vol. 107(442), pages 783-99, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:x:y:2007:i:3-4:p:107-. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleni Giannakopoulou).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.