The Influence of Arab Spring Effect on Economic Growth in the Middle East Countries: Structural Break Panel Data Analysis

Beşer, Murat; Kiliç, Nazife Özge

doi:10.15604/ejef.2017.05.03.010

Cited by 5 publications

(3 citation statements)

References 4 publications

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“…Especially in panel data analysis, there are only a couple of studies have been carried out under this theme (Mironov & Konovalova, 2019;Itoh et al, 2016). One of the significant studies in this area is "The Influence of Arab Spring Effect on Economic Growth in the Middle East Countries' by Beser & Kilic (2017). They discussed how the Arab Spring affects five (5) Middle East countries in terms of their political and economic condition.…”

Section: Structural Breaks and Economic Developmentmentioning

confidence: 99%

Effect of Structural Break on Financial Development and Economic Growth Nexus in Middle-Income Countries in Asia: Moderating Role of Technological Advancements

Hewag,

Pyeman,

Othman

2023

IMBR

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Asian countries have experienced many financial catastrophes and pandemics in the past couple of decades. Therefore, evaluating the effect of structural breaks on economies has taken substantive attention in the empirical literature. Thus, this study aims to investigate the effect of structural breaks on the Financial Development (FD) and Economic Growth (EG) of middle-income countries in Asia. The study considered the global financial crisis of 2008 as a key structural break. The sample consisted of 24 middle-income countries while the sample period was 20 years from 2000 to 2019. Technological Advancement was considered a moderator variable that facilitate the smooth functioning of the FD and EG. Structural Break was identified using the "xtbreak" function and the effect was analyzed with panel unit root, panel homogeneity test and short panel cointegration. The findings revealed that before the structural break, FD and moderator variables were the only significant variables but after the structural breaks, Human Capita and Private Consumption also have become significant. FD had a significant negative influence over EG before and after the structural break but the moderator variable had a positive influence. HC was not a significant factor before the structural break but has become significant after the economic downturn with a positive influence on EG. In contrast, PC shows a negative influence after the structural breaks. Hence, it guides the policymakers to decide on reducing investments for FD and direct funds to HC development and developing the technology. Moreover, they must consider making policy decisions to reduce PC.

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Section: Structural Breaks and Economic Developmentmentioning

confidence: 99%

Effect of Structural Break on Financial Development and Economic Growth Nexus in Middle-Income Countries in Asia: Moderating Role of Technological Advancements

Hewag,

Pyeman,

Othman

2023

IMBR

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“…Aisen and Veiga (2008) showed similar results and reported that the volatility in the inflation rate is highly related to political instability, in the same context, Aisen and Veiga (2013) show that the political risk influences the growth level of the country economy and affect negatively the banks performance by decreased capital accumulation. Beser and Kilic (2017) reported that the Arab Spring succeeded to effectively bring structural changes with regards to economic, social and political factors to many countries in the region.…”

Section: Literature Reviewmentioning

confidence: 99%

Political Instability and Banks Performance in the Light of Arab Spring: Evidence From GCC Region

Jaara¹

2021

IJFR

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The purpose of this empirical study is to investigate the consequences of the Arab spring on the banks financial performance at the level of Islamic and conventional banks in the Gulf Cooperative Council (GCC). The sample of this empirical research comprises 20 Islamic banks and 37 conventional banks during the period 2000-2018. The quantitative research methodology was employed by using Bivariate analysis and a panel regression on longitudinal data. The empirical findings show that the Arab spring had a direct negative influence on the bank’s performance in the GCC, whether Islamic or non-Islamic banks. The direct negative influence is most prominent on the banking system in the GCC region in the inability of these banks to enhance and maintain their financial performance and profitability level during the Arab spring. The results also revealed influenced negatively on the country-specific variables. These findings considered to be a caution to policymakers when establishing a strategy for microeconomic and macroeconomic financial performance. It is broadly known that the Arab spring has an important influence on the economies of the GCC countries. Notably, the influence of the Arab spring on the banking industry performance and profitability has not so far been exposed to detailed investigation. Therefore, this research pursues to shed light on this gap by employing robust quantitative analysis. It differentiates between pre and post the Arab spring, it also classified banks into Islamic and non-Islamic and it employs micro and macroeconomic variables to investigate the influence of Arab spring effectively. It`s also the first to examine the micro and macroeconomic variables across both Islamic and non-Islamic banks pre and post the Arab spring. This research employed both Bivariate analysis and a panel regression on longitudinal data on both Islamic and conventional banks.

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“…They contend that the relationship between FD and EG is contingent upon country-specific variables such as income level, labour force, population, and the developmental stage of the country (whether it is developed, developing, or underdeveloped). Additionally, the political environment of the country and macro-level factors, such as global market share, the flow of foreign direct investments, and global economic downturns, also play a role in this nexus (Benczur et al, 2019;Doumbia, 2016;Asteriou & Spanos, 2019;Ruiz, 2018;Beser & Kilic, 2017).…”

Section: Introductionmentioning

confidence: 99%

Moderator Effect of Technological Advancement on Financial Development and Economic Growth Nexus in Asian Countries

Hewage,

Pyeman,

Othman

2024

JIS

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The examination of the nexus between Financial Development (FD), Technological Advancement (TA), Human Capital (HC), andPrivate Consumption (PC) to Economic Growth (EG) has gained substantial attention in both empirical and theoretical academia sincethe early nineteenth century. Scholars affirm that FD, HC, PC, and TA are crucial factors in determining optimal resource allocationand efficient utilization required to achieve sustainable EG. This study investigates the nexus of FD, HC, and PC with EG in Asiancountries, with TA serving as the moderator. Data from 35 countries were collected annually over 15 years, spanning from 2005 to 2019. Using short panel data analysis, due to the higher number of crosssections (35) compared to time intervals (15), the findings confirm TA’s significant moderator effect in both short and long-run time scenarios. Additionally, a significant negative relationship with EG is observed for FD and PC, while TA and HC are identified as promoters of EG. The study underscores the importance of investing in TA while concurrently developing the quality of the labor force. Policymakers are encouraged to prioritize technology development and the introduction of innovative techniques. However, caution is advised in FD projects, necessitating strategies to reduce domestic private consumption.

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The Influence of Arab Spring Effect on Economic Growth in the Middle East Countries: Structural Break Panel Data Analysis

Cited by 5 publications

References 4 publications

Effect of Structural Break on Financial Development and Economic Growth Nexus in Middle-Income Countries in Asia: Moderating Role of Technological Advancements

Effect of Structural Break on Financial Development and Economic Growth Nexus in Middle-Income Countries in Asia: Moderating Role of Technological Advancements

Political Instability and Banks Performance in the Light of Arab Spring: Evidence From GCC Region

Moderator Effect of Technological Advancement on Financial Development and Economic Growth Nexus in Asian Countries

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