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Financial Liberalisation and Financial Market Development: The Case of Tunisia

Author

Listed:
  • Aida Kammoun

    (University of Sfax, Tunisia, TUNISIE)

  • Abdelwahed Trabelsi

    (University of Tunis, Tunisia, TUNISIE)

  • Chokri Mamoghli

    (University of Carthage, Tunisia, TUNISIE)

Abstract

Financial systems in developing countries are generally characterized by under-developed financial markets; they are dominated by commercial banks. This was the case of Tunisia, which, by adopting financial reforms, sought to make a dynamic financial market in order to insure a transition from credit to market economy. In this context, it appears useful to evaluate and quantify the impact of the adopted reforms on the development of Tunisian financial market. Studies that have tried to explore this subject are generally rare. They have all resorted to compare some indicators of financial market development before and after the introduction of reforms. Within the framework of this paper, we suggest using intervention models in order to quantify (measure) the importance and the nature (transitory or permanent) of the effects of each adopted reform.

Suggested Citation

  • Aida Kammoun & Abdelwahed Trabelsi & Chokri Mamoghli, 2011. "Financial Liberalisation and Financial Market Development: The Case of Tunisia," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 57-70, November.
    • Handle: RePEc:bap:journl:110505
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    References listed on IDEAS

    as
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    3. Fry, M.J., 1996. "In favour of Financial Liberalisation," Discussion Papers 96-24, Department of Economics, University of Birmingham.
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    6. Demirguc-Kunt, Ash & Levine, Ross, 1996. "Stock Market Development and Financial Intermediaries: Stylized Facts," The World Bank Economic Review, World Bank, vol. 10(2), pages 291-321, May.
    7. Ang, James B. & McKibbin, Warwick J., 2007. "Financial liberalization, financial sector development and growth: Evidence from Malaysia," Journal of Development Economics, Elsevier, vol. 84(1), pages 215-233, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial reforms; Liberalization; Financial market development; Intervention models; Transitory and permanent effects;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • N27 - Economic History - - Financial Markets and Institutions - - - Africa; Oceania
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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