Can Financial Development Cause Financial Instability?
The objective of this article consists to identify which determinants of financial development can cause financial instability and if these determinants depend on the economic development degree of the country. Based on a sample of 56 countries, including 22 developed countries and 32 emerging count...
| Main Authors: | , |
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| Format: | Article |
| Language: | Arabic |
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Noufissa EL MOUJADDIDI
2020-12-01
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| Series: | Revue des Etudes Multidisciplinaires en Sciences Economiques et Sociales |
| Subjects: | |
| Online Access: | https://revues.imist.ma/index.php/REMSES/article/view/23894 |
| _version_ | 1831812307781419008 |
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| author | Feryel OUERGHI Tayssir OUESLETI |
| author_facet | Feryel OUERGHI Tayssir OUESLETI |
| author_sort | Feryel OUERGHI |
| collection | DOAJ |
| description | The objective of this article consists to identify which determinants of financial development can cause financial instability and if these determinants depend on the economic development degree of the country. Based on a sample of 56 countries, including 22 developed countries and 32 emerging countries over the period of 1960-2014, we test the role of the financial development measured by financial intermediation, financial market capitalization and financial liberalization, on the occurrence of financial instability. Using a dynamic panel techniques, GMM SYSTEM estimator, our results show that financial intermediation increase financial instability in advanced and emerging countries. However, financial liberalization decrease financial instability in developed economies, and increase it in emerging ones, depending on the degree of financial innovation. Additionally, the quality of regulation plays an important role in stabilizing emerging countries. These results have important implications for financial regulation policies. |
| first_indexed | 2024-12-22T21:34:10Z |
| format | Article |
| id | doaj.art-30aa4c92623f46a28fe3ff6123209e4a |
| institution | Directory Open Access Journal |
| issn | 2489-2068 |
| language | Arabic |
| last_indexed | 2024-12-22T21:34:10Z |
| publishDate | 2020-12-01 |
| publisher | Noufissa EL MOUJADDIDI |
| record_format | Article |
| series | Revue des Etudes Multidisciplinaires en Sciences Economiques et Sociales |
| spelling | doaj.art-30aa4c92623f46a28fe3ff6123209e4a2022-12-21T18:11:49ZaraNoufissa EL MOUJADDIDIRevue des Etudes Multidisciplinaires en Sciences Economiques et Sociales2489-20682020-12-015310.48375/IMIST.PRSM/remses-v5i3.2389411837Can Financial Development Cause Financial Instability?Feryel OUERGHI0Tayssir OUESLETI1University of TunisUniversity of TunisThe objective of this article consists to identify which determinants of financial development can cause financial instability and if these determinants depend on the economic development degree of the country. Based on a sample of 56 countries, including 22 developed countries and 32 emerging countries over the period of 1960-2014, we test the role of the financial development measured by financial intermediation, financial market capitalization and financial liberalization, on the occurrence of financial instability. Using a dynamic panel techniques, GMM SYSTEM estimator, our results show that financial intermediation increase financial instability in advanced and emerging countries. However, financial liberalization decrease financial instability in developed economies, and increase it in emerging ones, depending on the degree of financial innovation. Additionally, the quality of regulation plays an important role in stabilizing emerging countries. These results have important implications for financial regulation policies.https://revues.imist.ma/index.php/REMSES/article/view/23894financial development, financial liberalization, financial innovation, financial intermediates, market capitalization, financial instability |
| spellingShingle | Feryel OUERGHI Tayssir OUESLETI Can Financial Development Cause Financial Instability? Revue des Etudes Multidisciplinaires en Sciences Economiques et Sociales financial development, financial liberalization, financial innovation, financial intermediates, market capitalization, financial instability |
| title | Can Financial Development Cause Financial Instability? |
| title_full | Can Financial Development Cause Financial Instability? |
| title_fullStr | Can Financial Development Cause Financial Instability? |
| title_full_unstemmed | Can Financial Development Cause Financial Instability? |
| title_short | Can Financial Development Cause Financial Instability? |
| title_sort | can financial development cause financial instability |
| topic | financial development, financial liberalization, financial innovation, financial intermediates, market capitalization, financial instability |
| url | https://revues.imist.ma/index.php/REMSES/article/view/23894 |
| work_keys_str_mv | AT feryelouerghi canfinancialdevelopmentcausefinancialinstability AT tayssirouesleti canfinancialdevelopmentcausefinancialinstability |