Does stock market liberalization spur financial and economic development in the MENA region?

An Evaluation of the Impact of Monetary Policy on the Real Sector in Nigeria

“…He argues that, by distorting private credit allocation in favor of households at the expense of firms, financial liberalization has tended to reduce available loans for the business sector, and in particular for small and medium-sized enterprises. Naceur, Samir and Omran (2008) by contrast fail to find any significant impact of stock market liberalization on investment growth using annual data for 11 countries over the period . The of the recent study by Mukherjee et al (2011) examine the operation of the traditional Keynesian interest rate channel of the monetary policy transmission mechanism in five potential inflation targeting economies in the emerging economies and compare it with fourteen inflation targeting emerging market economies using panel data analysis.…”

Direction of Causality Between Financial Development and Economic Growth. Evidence for Developing Countries

“…The author highlights the potential destructive and destabilizing role and of a financial system. Performing a survey on a sample of 11 Arab countries, Naceur et al (2008) concluded that underdeveloped financial systems negatively influence the economic growth in these countries and stress the role of building a strength financial system for them. In their study in the field of finance-growth nexuses conducted in ten New European Union members, Caporale et al (2009) ascertained the existence of a reduced financial development; and therefore, the contribution of the relatively underdeveloped credit and stock markets to growth is limited.…”

Determinants of foreign portfolio investment: the case of Jordan

“…Garg and Dua (2014) argued that the liberalization of the capital market leads to openness of the market which allows foreign investors to purchase domestic financial securities. In this context, Naceur et al (2008) studied the impact of stock market liberalization on economic growth and stock market development in 11 countries in the MENA region. They mentioned that regardless of the liberation effort in MENA region during last decades, the capital markets were still underdeveloped, and they face structural and legal difficulties besides transparency shortage.…”