Does Institutional Quality Matter for Financial Development and Growth? Further Evidence from MENA Countries

21 Pages Posted: 29 Sep 2017

See all articles by Ali M. Kutan

Ali M. Kutan

Southern Illinois University at Edwardsville

Nahla Samargandi

King Abdulaziz University - Department of Economics

Kazi Sohag

Date Written: September 2017

Abstract

This study scrutinises the role of institutional quality in the linkage of financial development and economic growth in 21 Middle East and North African (MENA) countries. Using the common correlated effect mean pooled approach and annual data for the period 1980–2012, we find that not all measures of financial development promote economic growth in the absence of institutional quality, but they all augment growth in the presence of institutional quality. Furthermore, we find that foreign direct investment enhances the growth of MENA countries by the development of financial markets.

Suggested Citation

Kutan, Ali M. and Samargandi, Nahla and Sohag, Kazi, Does Institutional Quality Matter for Financial Development and Growth? Further Evidence from MENA Countries (September 2017). Australian Economic Papers, Vol. 56, Issue 3, pp. 228-248, 2017. Available at SSRN: https://ssrn.com/abstract=3044111 or http://dx.doi.org/10.1111/1467-8454.12097

Ali M. Kutan (Contact Author)

Southern Illinois University at Edwardsville ( email )

Department of Economics and Finance AH-3141
Edwardsville, IL 62026-1102
United States
618-650-3473 (Phone)
618-650-3047 (Fax)

HOME PAGE: http://https://ideas.repec.org/e/pku30.html

Nahla Samargandi

King Abdulaziz University - Department of Economics ( email )

King Abdulaziz University, Saudi Arabia
Jeddah, 12411
Saudi Arabia

No contact information is available for Kazi Sohag

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