The Effect of Globalization on Financial Development in the MENA Region
This paper provides new evidence that sheds light on the effect of globalization on financial development using data from 9 MENA countries over the period 1991–2007. The empirical results based on the Panel-data Vector Autoregression and Fully Modified Ordinary Least Squares methods reveal that globalization affects financial development and economic growth in the MENA region while globalization does not play any role in institutional reforms, which promote financial development and economic growth. Hence, governments can play a crucial role in improving the necessary economic conditions for the benefits of globalization to be felt in the MENA region. Also institutional reform policies can be important for policy makers who are attempting to accelerate globalization and financial development. Copyright Springer-Verlag Wien 2012
Volume (Year): 19 (2012)
Issue (Month): 2 (November)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/european+integration/journal/11300|
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.:
- Axel Dreher, 2006.
"Does globalization affect growth? Evidence from a new index of globalization,"
Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
- Axel Dreher, 2005. "Does Globalization Affect Growth? Evidence from a new Index of Globalization," TWI Research Paper Series 6, Thurgauer Wirtschaftsinstitut, Universitï¿½t Konstanz.
- Pedroni, Peter, 2004.
"Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis,"
Cambridge University Press, vol. 20(03), pages 597-625, June.
- Peter Pedroni, 2004. "Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis," Department of Economics Working Papers 2004-15, Department of Economics, Williams College.
- Kar, Muhsin & Nazlıoğlu, Şaban & Ağır, Hüseyin, 2011.
"Financial development and economic growth nexus in the MENA countries: Bootstrap panel granger causality analysis,"
Elsevier, vol. 28(1), pages 685-693.
- Kar, Muhsin & NazlIoglu, Saban & AgIr, Hüseyin, 2011. "Financial development and economic growth nexus in the MENA countries: Bootstrap panel granger causality analysis," Economic Modelling, Elsevier, vol. 28(1-2), pages 685-693, January.
- Sanchez, Omar, 2003. "Globalization as a Development Strategy in Latin America?," World Development, Elsevier, vol. 31(12), pages 1977-1995, December.
- Pasaran, M.H. & Im, K.S. & Shin, Y., 1995.
"Testing for Unit Roots in Heterogeneous Panels,"
Cambridge Working Papers in Economics
9526, Faculty of Economics, University of Cambridge.
- Koutsomanoli-Filippaki, Anastasia & Mamatzakis, Emmanuel, 2009. "Performance and Merton-type default risk of listed banks in the EU: A panel VAR approach," Journal of Banking & Finance, Elsevier, vol. 33(11), pages 2050-2061, November.
- Stiglitz, Joseph E., 2004. "Globalization and growth in emerging markets," Journal of Policy Modeling, Elsevier, vol. 26(4), pages 465-484, June.
- Dreger, Christian & Reimers, Hans-Eggert, 2005.
"Health Care Expenditures in OECD Countries: A Panel Unit Root and Cointegration Analysis,"
IZA Discussion Papers
1469, Institute for the Study of Labor (IZA).
- Dreger, C. & Reimers, H.E., 2005. "Health Care Expenditures in OECD Countries: A Panel Unit Root and Cointegration Analysis," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(2), pages 5-20.
- Robert Taylor, 2010. "China’s Developing Infrastructure: The Impact of Globalisation," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 17(4), pages 668-685, December.
- Mishkin, Frederic S., 2009. "Globalization and financial development," Journal of Development Economics, Elsevier, vol. 89(2), pages 164-169, July.
- Peter Pedroni, 1999.
"Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors,"
Department of Economics Working Papers
2000-02, Department of Economics, Williams College.
- Pedroni, Peter, 1999. " Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 653-70, Special I.
- Love, Inessa & Zicchino, Lea, 2006. "Financial development and dynamic investment behavior: Evidence from panel VAR," The Quarterly Review of Economics and Finance, Elsevier, vol. 46(2), pages 190-210, May.
- Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002.
"Unit root tests in panel data: asymptotic and finite-sample properties,"
Journal of Econometrics,
Elsevier, vol. 108(1), pages 1-24, May.
- Tom Doan, . "LEVINLIN: RATS procedure to perform Levin-Lin-Chu test for unit roots in panel data," Statistical Software Components RTS00242, Boston College Department of Economics.
- Črt Kostevc & Tjaša Redek & Andrej Sušjan, 2007. "Foreign Direct Investment and Institutional Environment in Transition Economies," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 14(1), pages 40-54, May.
- Peter Pedroni, 2000.
"Fully Modified OLS for Heterogeneous Cointegrated Panels,"
Department of Economics Working Papers
2000-03, Department of Economics, Williams College.
- Tom Doan, . "PANELFM: RATS procedure to perform panel data group mean FMOLS," Statistical Software Components RTS00151, Boston College Department of Economics.
- Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," Review of Economic Studies, Oxford University Press, vol. 57(1), pages 99-125.
- Suleiman Abu-Bader & Aamer S. Abu-Qarn, 2008. "Financial Development and Economic Growth: Empirical Evidence from Six MENA Countries," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 803-817, November.
When requesting a correction, please mention this item's handle: RePEc:spr:trstrv:v:19:y:2012:i:2:p:205-223. 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: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.