Liberalization, crisis and growth in MENA region: Do institutions matter?

Rachdi, Houssem; Hakimi, Abdelaziz; Hamdi, Helmi

doi:10.1016/j.jpolmod.2018.05.001

Cited by 13 publications

(6 citation statements)

References 54 publications

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“…A study conducted by Catrinescu shows that the quality of governance can moderate the variable remittances of society towards economic growth (Catrinescu et al, 2009). Rachdi et al (2018) also found a similar finding for the case of financial liberalization variables and Williams for bank credit (Williams, 2019). Therefore, it can be understood that the quality of governance will be more able to strengthen the influence of the private sector on economic growth than government economic policies, both fiscal and monetary.…”

Section: The Influence Of the Governance Index On Economic Growthmentioning

confidence: 70%

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The Role of Institution and Macroeconomic Policy Mix on Economic Growth in Muslim Country

Wibowo

Kusuma

Qizam

2021

IJIEF

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This study examines the role of the fiscal and monetary policy mix on economic growth with the St. model. Louis, which Andersen and Jordan developed in 1968, included the variable quality of institutions (governance) as a moderator. This research model uses the independent variable in the form of money supply (M) as a proxy for monetary policy and government expenditure (G) and government debt (D) as a proxy for fiscal policy. The governance index variable (INS) consists of 6 indicators, namely 1). Voice and Accountability; 2). Political Stability and Absence of Violence/Terrorism; 3). Government Effectiveness; 4). Regulatory Quality; 5). Rule of Law; 6). Control of Corruption. The objects of this research are all member countries of the Organization of the Islamic Conference (OIC), 57 countries. Due to the limited data that can be accessed, 46 countries were selected as research samples with a research period of 2005-2018. The analytical tool used in this study is a moderating panel data regression consisting of 28 equations. This study indicates that fiscal policy (government expenditure) and monetary policy (money supply) have a significant effect on economic growth. The government debt has a negative effect on economic growth in OIC countries. The quality of governance has a positive effect on economic growth in the OIC countries. This shows the important role of the quality of governance in the economy, as in the latest economic growth theory. The quality of governance cannot moderate the effect of the fiscal and monetary policy mix on economic growth in the OIC countries. The governance index plays a more direct role in economic growth, not as an effective moderator for government economic policies. The governance index is more effective in moderating various economic variables, which are private economic activities.

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Section: The Influence Of the Governance Index On Economic Growthmentioning

confidence: 70%

“…This study found that good law enforcement will be able to increase economic activity drastically. Therefore, to achieve good economic growth and avoid crises, MENA countries need to strengthen the quality of institutions by implementing good governance (Rachdi et al, 2018).…”

Section: Previous Studiesmentioning

confidence: 99%

The Role of Institution and Macroeconomic Policy Mix on Economic Growth in Muslim Country

Wibowo

Kusuma

Qizam

2021

IJIEF

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“…De facto capital account measures were significant at 5% level, indicating that this measure has been widely used by research in explaining the phenomenon of CAL and crisis (Ghosh et al, 2011;Licchetta, 2011;Rachdi et al, 2015). De facto indices capture the actual flows bifurcating them into the price based and quantity-based measures.…”

Section: Measuring the Effect Size Of Capital Account Liberalisation ...mentioning

confidence: 97%

Capital Account Liberalisation and Crises: A Meta-Analysis

Kalsie

Kalra

2022

The Indian Economic Journal

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The present study is a critical survey of the literature on the impact of capital account liberalisation on both banking and currency crises. The objective of the study is to identify the publication bias and explore heterogeneity in the extant studies. For measuring the effect size of capital account liberalisation on banking and currency crises, an identification of relevant studies is done. Partial correlation coefficient is used for measuring standardised effect size. Funnel asymmetry test (FAT) and precision effect test (PET–PEE) are used for identifying publication selection bias. Meta-regression analysis (MRA) is done for exploring the heterogeneity in literature. I did meta-analysis on 121 t stats reported in 14 empirical papers. The results of the FAT–PET–PEE test indicate that publication bias does not exist in the literature. The study explains the heterogeneity of results reported in earlier studies. De facto measure, size of economy, inflation, real interest rate differential, real effective exchange rate overvaluation, current account balance to GDP and reserve money to GDP are the major impacting variables of both banking and currency crises. The probit approach is seen to be more appropriate in capturing the above relationship. JEL Codes: C1, F6, G01

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“…Few studies conclude that liberalization strengthens financial development and contributes to long-term growth (Tanna et al, 2017;Rachdi et al, 2018). Other studies focused on the negative effects on financial stability and the succession of banking crises over the decades (Rancière and Tornell, 2016;Gnangnon, 2018;Ambrogio et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Banking Regulation on the Emergence of Crises in Emerging Countries

Mekki

2019

Asian Economic and Financial Review

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In this study, we analyzed the regulatory, macroeconomic and institutional environmental effects on the probability of the emergence of banking crises in 78 emerging countries that had a fragile banking system in 1997 in a cross-sectional study using a logit model. The empirical examination validates a link between the weakness of certain regulatory and macroeconomic factors and of newly liberalized emerging market banking crises, this study want to examine weakness of regulatory and macroeconomic factors of newly liberalized, etc. banking concentration, restrictions on insurance, the financial market and the real estate sector were not related to the outbreak of banking crises in our estimates. On the basis of results, this study concludes that good regulation leads to bank stability. However, certain restrictions on inappropriate banking activity were the causes of the emergence of banking crises. As a result, the fragility of macroeconomic and institutional factors and the lack of diversification has clearly led to bank fragility and consequently to banking crises. Contribution/ Originality:This study contributes to the existing literature by considering that the vulnerability of banks in emerging countries reflects a fragile and inefficient banking system. Thus a strong restriction of certain banking activities accompanied by a deterioration of the macroeconomic factors and a weakness of some institutional factors can lead to banking crises.

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Liberalization, crisis and growth in MENA region: Do institutions matter?

Cited by 13 publications

References 54 publications

The Role of Institution and Macroeconomic Policy Mix on Economic Growth in Muslim Country

The Role of Institution and Macroeconomic Policy Mix on Economic Growth in Muslim Country

Capital Account Liberalisation and Crises: A Meta-Analysis

The Impact of Banking Regulation on the Emergence of Crises in Emerging Countries

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