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Financial gradualism and banking crises in North Africa region: an investigation by a panel logit model

Author

Listed:
  • Ahmed KHATTAB

    (Department of Economics, Abdelmalek Essaadi University, Faculty of Economics, Tangier, Morocco.)

  • Abid IHADIYAN

    (Department of Economics, Abdelmalek Essaadi University, Faculty of Economics, Tangier, Morocco.)

Abstract

In order to overcome the troubles of the crisis in the seventies, North African countries have adopted financial liberalization policies to enhance their economic growth. Moreover, these policies have affected the stability of their banking systems. The purpose of this study is to test the impact of financial liberalization on the probability of appearance of banking crises which covers a sample of four countries of the North Africa region during the period 1970-2003 by using a panel logit model. The empirical analysis of this study suggests that (a) the degree of financial liberalization impact significantly the occurrence of banking crises in the countries of the region, (b) the order of financial liberalization between internal and external financial liberalization is also crucial for the emergence of banking crises

Suggested Citation

  • Ahmed KHATTAB & Abid IHADIYAN, 2017. "Financial gradualism and banking crises in North Africa region: an investigation by a panel logit model," Journal of Economics and Political Economy, EconSciences Journals, vol. 4(4), pages 343-355, December.
    • Handle: RePEc:cvv:journ1:v:4:y:2017:i:4:p:343-355
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    References listed on IDEAS

    as
    1. Barry Eichengreen, 2000. "The EMS Crisis in Retrospect," NBER Working Papers 8035, National Bureau of Economic Research, Inc.
    2. Oriana Bandiera & Gerard Caprio & Patrick Honohan & Fabio Schiantarelli, 2000. "Does Financial Reform Raise or Reduce Saving?," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 239-263, May.
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    Keywords

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    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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