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Effect of Financial Liberalization on the Probability of Occurrence of Banking Crises

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  • Ramzi Farhani

    (Université de Sousse)

  • Ghrissi Mhamdi

    (Université de Sousse)

  • Abdelkader Aguir

    (Université de Sousse)

  • Mounir Smida

    (Université de Sousse)

Abstract

This study examines the relationship between financial liberalization and the advent probability of banking crises because of institutional quality. We used a logit panel data for a sample of fifty developing countries during the period (1990-2014). The results show that there is a positive relationship between financial liberalization and banking crises and the strengthening of institutional quality overcomes the problem of banking crises.

Suggested Citation

  • Ramzi Farhani & Ghrissi Mhamdi & Abdelkader Aguir & Mounir Smida, 2015. "Effect of Financial Liberalization on the Probability of Occurrence of Banking Crises," Post-Print halshs-01138430, HAL.
    • Handle: RePEc:hal:journl:halshs-01138430
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01138430
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    1. Ramzi FARHANI & Ghrissi MHAMDI & Abdelkader AGUIR & Mounir SMIDA, 2015. "Effect of Financial Liberalization on the Probability of Occurrence of Banking Crises," Expert Journal of Economics, Sprint Investify, vol. 3(1), pages 14-21.

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    More about this item

    Keywords

    banking crises; financial liberalization; institutional quality JEL classification: G01; G11; G15;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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