چکیده:
Financial sector is one of the most influential sectors in economic activities. Empirical and theoretical studies conducted in recent years have also confirmed the significant role of financial institutions in economic growth. Additionally, trade and financial liberalization policies have been particular concerned with strategic policies in developed and developing countries. According to dynamic panel data (DPD) and by means of generalized method of moments (GMM) during 1990 to 2008, this study has investigated effects of trade and financial liberalization on financial development of MENA member countries. Empirical results imply that trade liberalization and financial liberalization have influenced separately financial development, while due to inefficiency of financial institutions in providing appropriately financial resources, conducting both liberalization simultaneously has had an unexpected negative effect on the financial development in the region.
خلاصه ماشینی:
"According to dynamic panel data (DPD) and by means of generalized method of moments (GMM) during 1990 to 2008, this study has investigated effects of trade and financial liberalization on financial development of MENA member countries.
Having estimated a dynamic panel data (DPD), their results imply significant effects of trade, financial openness and economic institutions on different financial development levels among countries under consideration.
3. The Model In this study, a panel data specification has been used for the MENA countries during 1990 - 2008 to evaluate the impact of trade and financial liberalization on financial market development (including banking sector and capital market).
Two de jure and de facto indices for financial liberalization plus other variables are used in estimation of two regressions (Baltagi and Demetriades, 2008), as follows: KAOPEN denotes an index of financial openness (de jure) that is computed through moving average of control variables (0 and 1) indicating restriction on capital account for each country during 1990 to 2008.
Table 1: The effect of openness on financial development in MENA countries The index of financial liberalization: (Foreign assets and liabilities to GDP) index introduced by China &Ito Capital market/GDP M2/GDP Private credit /GDP dependent variables Independent variables 0.
Source: Authors Table 2: The effect of openness on financial development in MENA countries The index of financial liberalization: KAOPEN index introduced by China &Ito Capital market/GDP M2/GDP Private credit /GDP dependent variables Independent variables 0."