Financial integration, regulation and competitiveness in Middle East and North Africa countries

Abstract

PurposeThe purpose of this article is to examine is to the link between stock markets and economic growth in advanced and emerging economies in the Middle East and North Africa (mena) region.Design/methodology/approachIndices measuring the degree of financial openness and market development are constructed and used to perform various Granger causality tests to identify predictors of current growth rates.FindingsIt is found that the link exists only in the group of high income countries but this relationship is rather weak for the low income MENA economies. Privatization alone, although necessary, is not enough to spur economic growth. The establishment of sound institutions and well‐defined regulatory policies are needed to protect investors’ rights and entice them to invest in real and financial assets in the MENA region.Originality/valueThe paper offers insights into financial integration, regulation and competitiveness in MENA countries.

Corporate Governance Mechanisms, Privatization Method and the Performance of Privatized Companies in Jordan

“…In the Jordanspecific context, Awamleh (2002) suggests that changes in corporate governance lead to the success of privatization programs. Such finding is consistent with Gentzoglanis (2007) who argues that privatization needs effective corporate governance and policies to ensure sufficient protection for shareholders and foreign investors in the Middle East and North Africa (MENA), including Jordan. Therefore, determining whether these changes have an effect on the performance of privatized Jordanian SOEs is beneficial.…”

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

“…His empirical evidence suggests that the GCC 1 stock markets still offer international investors portfolio diversification potentials while other emerging MENA stock markets like those of Turkey, Egypt, and Morocco and to a lesser extent Jordan have matured and are now integrated with the world financial markets. Recently, Gentzoglanis (2007) examines the link between the degree of financial openness and economic growth and documents that this link exists only within the group of high income countries but this relationship is rather weak for the low income MENA economies. Privatization alone, although necessary, is not enough to spur economic growth.…”

Volatility Spillovers between the Equity Market and Foreign Exchange Market in South Africa in the 1995‐2010 Period

“…The financial crisis notwithstanding the period 2000 to 2010 was a great period for equity markets in emerging market economies. Emerging market equities in particular soared to new highs as financial liberalisation and deregulation opened up the markets to new international investors (Gentzoglanis, ). Largely fuelled by the abundance of liquidity, these equity markets expanded at a rapid pace.…”