Institutional and Macroeconomic Determinants of Stock Market Development in Mena Region: New Results From a Panel Data Analysis
This paper provides new evidence on the influence of macroeconomic environment and institutional quality on stock market development, using data from 14 MENA countries over the period of 1990-2007. Using both panel data and instrumental variable techniques, we found that income level, saving rate,...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2010-03-01
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| Series: | The International Journal of Banking and Finance |
| Subjects: | |
| Online Access: | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8403 |
| _version_ | 1797958158901051392 |
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| author | Mondher Cherif Kaouthar Gazdar |
| author_facet | Mondher Cherif Kaouthar Gazdar |
| author_sort | Mondher Cherif |
| collection | DOAJ |
| description |
This paper provides new evidence on the influence of macroeconomic environment and institutional quality on stock market development, using data from 14 MENA countries over the period of 1990-2007. Using both panel data and instrumental variable techniques, we found that income level, saving rate, stock market liquidity, and interest rate influence stock market development with the expected theoretical signs. Our results also showed that the banking and the stock market sectors are complementary instead of being substitutes. We found that the institutional environment as captured by a composite policy risk index does not appear to be a driving force for the stock market capitalization in the region. Our last results are robust to different specifications and empirical techniques.
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| first_indexed | 2024-04-11T00:14:56Z |
| format | Article |
| id | doaj.art-04bcc88d3db5452b95307caba82ae3b1 |
| institution | Directory Open Access Journal |
| issn | 2811-3799 2590-423X |
| language | English |
| last_indexed | 2024-04-11T00:14:56Z |
| publishDate | 2010-03-01 |
| publisher | Universiti Utara Malaysia |
| record_format | Article |
| series | The International Journal of Banking and Finance |
| spelling | doaj.art-04bcc88d3db5452b95307caba82ae3b12023-01-09T03:08:32ZengUniversiti Utara MalaysiaThe International Journal of Banking and Finance2811-37992590-423X2010-03-0171Institutional and Macroeconomic Determinants of Stock Market Development in Mena Region: New Results From a Panel Data AnalysisMondher Cherif0Kaouthar Gazdar1Rheims University Euromed Marscille CEMMRheims University This paper provides new evidence on the influence of macroeconomic environment and institutional quality on stock market development, using data from 14 MENA countries over the period of 1990-2007. Using both panel data and instrumental variable techniques, we found that income level, saving rate, stock market liquidity, and interest rate influence stock market development with the expected theoretical signs. Our results also showed that the banking and the stock market sectors are complementary instead of being substitutes. We found that the institutional environment as captured by a composite policy risk index does not appear to be a driving force for the stock market capitalization in the region. Our last results are robust to different specifications and empirical techniques. https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8403Ethnic heterogeneityInstitutionsInstrumental variable techniqueMENA countriesPolitical riskPanel data |
| spellingShingle | Mondher Cherif Kaouthar Gazdar Institutional and Macroeconomic Determinants of Stock Market Development in Mena Region: New Results From a Panel Data Analysis The International Journal of Banking and Finance Ethnic heterogeneity Institutions Instrumental variable technique MENA countries Political risk Panel data |
| title | Institutional and Macroeconomic Determinants of Stock Market Development in Mena Region: New Results From a Panel Data Analysis |
| title_full | Institutional and Macroeconomic Determinants of Stock Market Development in Mena Region: New Results From a Panel Data Analysis |
| title_fullStr | Institutional and Macroeconomic Determinants of Stock Market Development in Mena Region: New Results From a Panel Data Analysis |
| title_full_unstemmed | Institutional and Macroeconomic Determinants of Stock Market Development in Mena Region: New Results From a Panel Data Analysis |
| title_short | Institutional and Macroeconomic Determinants of Stock Market Development in Mena Region: New Results From a Panel Data Analysis |
| title_sort | institutional and macroeconomic determinants of stock market development in mena region new results from a panel data analysis |
| topic | Ethnic heterogeneity Institutions Instrumental variable technique MENA countries Political risk Panel data |
| url | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8403 |
| work_keys_str_mv | AT mondhercherif institutionalandmacroeconomicdeterminantsofstockmarketdevelopmentinmenaregionnewresultsfromapaneldataanalysis AT kaouthargazdar institutionalandmacroeconomicdeterminantsofstockmarketdevelopmentinmenaregionnewresultsfromapaneldataanalysis |