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Privatization and Financial Market Development: A Comparison Between MENA Countries and Other Regions

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Listed:
  • Samy Ben Naceur
  • Narjess Boubakri
  • Samir Ghazouani

    () (Laboratoire d’Economie et Finance Appliquées (LEFA), and Ecole Supérieure de la Statistique et de l’Analyse de l’Information (ESSAI),Tunisia)

Abstract

This paper examines the impact of privatization on stock market size and liquidity in a multinational sample of 31 emerging markets. We find that the intensity of privatization and the use of privatization offerings on the stock market contribute to enhance stock market development. To enable result comparisons across geographical regions, we re-run our GMM on our dynamic panel and find that results vary across-regions. Privatization was the most beneficial in the Asian sub sample where most favorable conditions were put in place before privatization actually started. In the MENA region however, similar positive outcomes are yet to materialize. We derive several policy implications from our results.

Suggested Citation

  • Samy Ben Naceur & Narjess Boubakri & Samir Ghazouani, 2008. "Privatization and Financial Market Development: A Comparison Between MENA Countries and Other Regions," Working Papers 390, Economic Research Forum, revised 01 Jan 2008.
    • Handle: RePEc:erg:wpaper:390
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    References listed on IDEAS

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    7. Mohammed Omran, 2005. "Underpricing And Long‐Run Performance Of Share Issue Privatizations In The Egyptian Stock Market," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 28(2), pages 215-234, June.
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    11. Mohammed Omran, 2008. "The Performance of State-Owned Enterprises and Newly Privatized Firms: Does Privatization Really Matter?," Chapters, in: José María Fanelli & Lyn Squire (ed.),Economic Reform in Developing Countries, chapter 10, Edward Elgar Publishing.
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    Cited by:

    1. Muhsin KAR & Saban NAZLIOGLU & Huseyin AGIR, 2014. "Trade Openness, Financial Development, and Economic Growth in Turkey: Linear and Nonlinear Causality Analysis," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 8(1), pages 63-86.

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