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The Effect of Globalization on Financial Development in the MENA Region

  • World Transition Economy Research
  • Published:
Transition Studies Review

Abstract

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.

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Notes

  1. See Kostevc et al. (2007), Sanchez (2003) and Taylor (2010).

  2. It covers three main dimensions: economic integration, social integration, and political integration.

  3. Most of the MENA countries have joined International Organizations such as the World Trade Organization (WTO) which urges further trade reforms for these countries to sustain economic growth.

  4. Egypt, Iran, Jordan, Kuwait, Malta, Morocco, Oman, Saudi Arabia and Tunisia.

  5. The results for the other financial development indicators are also achieved and will be sent (if required).

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Authors and Affiliations

  1. Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia, Selangor, Malaysia

    Manizheh Falahaty & Siong Hook Law

Authors
  1. Manizheh Falahaty
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  2. Siong Hook Law
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Corresponding author

Correspondence to Siong Hook Law.

Appendix

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Table 7 Definition and sources of the data  
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Falahaty, M., Law, S.H. The Effect of Globalization on Financial Development in the MENA Region. Transit Stud Rev 19, 205–223 (2012). https://doi.org/10.1007/s11300-012-0242-6

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  • DOI: https://doi.org/10.1007/s11300-012-0242-6

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