Finance growth nexus: evidence from a panel of MENA countries
The finance-growth relationship has been extensively researched in recent decades.To date, however, there is no consensus among researchers on this issue. The current paper aims at shedding some lights on the relationship between financial development and economic growth focusing on data gathered f...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EuroJournals Publishing
2011
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/14844/ http://irep.iium.edu.my/14844/1/IRJFE_63_08.pdf |
| _version_ | 1848777745791713280 |
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| author | AL-MalkawI, Husam-Aldin Nizar Abdullah, Naziruddin |
| author_facet | AL-MalkawI, Husam-Aldin Nizar Abdullah, Naziruddin |
| author_sort | AL-MalkawI, Husam-Aldin Nizar |
| building | IIUM Repository |
| collection | Online Access |
| description | The finance-growth relationship has been extensively researched in recent decades.To date, however, there is no consensus among researchers on this issue. The current paper
aims at shedding some lights on the relationship between financial development and economic growth focusing on data gathered from the Middle East and North Africa(MENA) region. Specifically, the study uses a panel dataset of thirteen MENA countries for the period 1985-2005. The estimation method is based on pooled OLS regression with
robust standard errors, fixed effects and random effects models. To deal with potential endogeneity problems we run fixed and random effects models with instrumental variables.
The result suggests that there is a positive relationship between financial development and economic growth. The study also documents that inflation and government expenditure have negative impact on economic growth for those selected MENA countries. The paper ends with some policy implications and potential limitations. |
| first_indexed | 2025-11-14T14:50:52Z |
| format | Article |
| id | iium-14844 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:50:52Z |
| publishDate | 2011 |
| publisher | EuroJournals Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-148442012-01-18T03:33:16Z http://irep.iium.edu.my/14844/ Finance growth nexus: evidence from a panel of MENA countries AL-MalkawI, Husam-Aldin Nizar Abdullah, Naziruddin H Social Sciences (General) HB Economic Theory The finance-growth relationship has been extensively researched in recent decades.To date, however, there is no consensus among researchers on this issue. The current paper aims at shedding some lights on the relationship between financial development and economic growth focusing on data gathered from the Middle East and North Africa(MENA) region. Specifically, the study uses a panel dataset of thirteen MENA countries for the period 1985-2005. The estimation method is based on pooled OLS regression with robust standard errors, fixed effects and random effects models. To deal with potential endogeneity problems we run fixed and random effects models with instrumental variables. The result suggests that there is a positive relationship between financial development and economic growth. The study also documents that inflation and government expenditure have negative impact on economic growth for those selected MENA countries. The paper ends with some policy implications and potential limitations. EuroJournals Publishing 2011 Article NonPeerReviewed application/pdf en http://irep.iium.edu.my/14844/1/IRJFE_63_08.pdf AL-MalkawI, Husam-Aldin Nizar and Abdullah, Naziruddin (2011) Finance growth nexus: evidence from a panel of MENA countries. International Research Journal of Finance and Economics (63). pp. 129-139. ISSN 1450-2887 http://www.eurojournals.com/finance.htm |
| spellingShingle | H Social Sciences (General) HB Economic Theory AL-MalkawI, Husam-Aldin Nizar Abdullah, Naziruddin Finance growth nexus: evidence from a panel of MENA countries |
| title | Finance growth nexus: evidence from a panel of MENA countries |
| title_full | Finance growth nexus: evidence from a panel of MENA countries |
| title_fullStr | Finance growth nexus: evidence from a panel of MENA countries |
| title_full_unstemmed | Finance growth nexus: evidence from a panel of MENA countries |
| title_short | Finance growth nexus: evidence from a panel of MENA countries |
| title_sort | finance growth nexus: evidence from a panel of mena countries |
| topic | H Social Sciences (General) HB Economic Theory |
| url | http://irep.iium.edu.my/14844/ http://irep.iium.edu.my/14844/ http://irep.iium.edu.my/14844/1/IRJFE_63_08.pdf |