Financial Development, Trade Openness and Economic Growth in North African Countries
This contribution investigates the causal interactions between financial development, trade openness and economic growth in a panel of 3 countries of North Africa (Tunisia, Morocco, and Egypt) over the period 1980-2012. Using system Generalized Method of Moment (GMM) panel data analysis, we find str...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Editura ASE Bucuresti
2014-09-01
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| Series: | Romanian Economic Journal |
| Subjects: | |
| Online Access: | http://www.rejournal.eu/article/financial-development-trade-openness-and-economic-growth-north-african-countries |
| _version_ | 1818995545296863232 |
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| author | Nahed Zghidi Zouheir Abida |
| author_facet | Nahed Zghidi Zouheir Abida |
| author_sort | Nahed Zghidi |
| collection | DOAJ |
| description | This contribution investigates the causal interactions between financial development, trade openness and economic growth in a panel of 3 countries of North Africa (Tunisia, Morocco, and Egypt) over the period 1980-2012. Using system Generalized Method of Moment (GMM) panel data analysis, we find strong evidence of a positive link between trade openness and economic growth. We also find evidence that trade openness appear to be working as a complement to financial development and, moreover, that the effect of trade openness is more pronounced in the presence of the financial development variable. The policy implications of this study appeared clear. Improvement efforts need to be driven by local-level reforms to ensure the development of domestic financial system in order to take advantage of trade liberalization. |
| first_indexed | 2024-12-20T21:15:33Z |
| format | Article |
| id | doaj.art-d5469e03bc7a4cc7928fbbc82cd1f8e6 |
| institution | Directory Open Access Journal |
| issn | 1454-4296 2286-2056 |
| language | English |
| last_indexed | 2024-12-20T21:15:33Z |
| publishDate | 2014-09-01 |
| publisher | Editura ASE Bucuresti |
| record_format | Article |
| series | Romanian Economic Journal |
| spelling | doaj.art-d5469e03bc7a4cc7928fbbc82cd1f8e62022-12-21T19:26:26ZengEditura ASE BucurestiRomanian Economic Journal1454-42962286-20562014-09-01XVII5391120Financial Development, Trade Openness and Economic Growth in North African CountriesNahed Zghidi 0Zouheir Abida1Higher School of Commerce of Sfax, University of Sfax, Tunisia, e-mail: zghidi.nahed@gmail.comUniversity of Sfax, Faculty of Economics and Management of Sfax, Tunisia, e-mail: zouheir.abida@gmail.comThis contribution investigates the causal interactions between financial development, trade openness and economic growth in a panel of 3 countries of North Africa (Tunisia, Morocco, and Egypt) over the period 1980-2012. Using system Generalized Method of Moment (GMM) panel data analysis, we find strong evidence of a positive link between trade openness and economic growth. We also find evidence that trade openness appear to be working as a complement to financial development and, moreover, that the effect of trade openness is more pronounced in the presence of the financial development variable. The policy implications of this study appeared clear. Improvement efforts need to be driven by local-level reforms to ensure the development of domestic financial system in order to take advantage of trade liberalization.http://www.rejournal.eu/article/financial-development-trade-openness-and-economic-growth-north-african-countriesFinancial developmentTrade opennessEconomic growthDynamic panel data analysis |
| spellingShingle | Nahed Zghidi Zouheir Abida Financial Development, Trade Openness and Economic Growth in North African Countries Romanian Economic Journal Financial development Trade openness Economic growth Dynamic panel data analysis |
| title | Financial Development, Trade Openness and Economic Growth in North African Countries |
| title_full | Financial Development, Trade Openness and Economic Growth in North African Countries |
| title_fullStr | Financial Development, Trade Openness and Economic Growth in North African Countries |
| title_full_unstemmed | Financial Development, Trade Openness and Economic Growth in North African Countries |
| title_short | Financial Development, Trade Openness and Economic Growth in North African Countries |
| title_sort | financial development trade openness and economic growth in north african countries |
| topic | Financial development Trade openness Economic growth Dynamic panel data analysis |
| url | http://www.rejournal.eu/article/financial-development-trade-openness-and-economic-growth-north-african-countries |
| work_keys_str_mv | AT nahedzghidi financialdevelopmenttradeopennessandeconomicgrowthinnorthafricancountries AT zouheirabida financialdevelopmenttradeopennessandeconomicgrowthinnorthafricancountries |