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Financial development, trade openness and economic growth in MENA countries: TYDL panel causality approach

Author

Listed:
  • Hicham AYAD

    (University of Abu Bakr Belkaid Tlmecen, Algeria)

  • Mostéfa BELMOKADDEM

    (University of Abu Bakr Belkaid Tlmecen, Algeria)

Abstract

This paper examines the causal relationship between financial development (measured as Kaopen index and Line and Milesi-Ferreti index), trade openness and economic growth for 16 MENA countries within the panel co-integration techniques, panel VAR model and TYDL (Toda, Yamamoto, Dolado and Lutkepohl) Granger causality (1996), the empirical results show that both of finance-led growth and trade-led growth hypothesis seem to be rejected for the group as a whole. The results imply that financial development and trade liberalization do not seem to have made a significant impulse on economic growth for the period 1980-2014.

Suggested Citation

  • Hicham AYAD & Mostéfa BELMOKADDEM, 2017. "Financial development, trade openness and economic growth in MENA countries: TYDL panel causality approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(610), S), pages 233-246, Spring.
    • Handle: RePEc:agr:journl:v:xxiv:y:2017:i:1(610):p:233-246
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    References listed on IDEAS

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    4. Mohammad Imdadul Haque, 2020. "The Growth of Private Sector and Financial Development in Saudi Arabia," Economies, MDPI, vol. 8(2), pages 1-17, May.
    5. Klaus Schmidt-Hebbel, 2019. "Macroeconomic Institutions: Lessons from World Experience for MENA Countries," Working Papers 1311, Economic Research Forum, revised 21 Aug 2019.
    6. Clovis Wendji Miamo & Elvis Dze Achuo, 2022. "Can the resource curse be avoided? An empirical examination of the nexus between crude oil price and economic growth," SN Business & Economics, Springer, vol. 2(1), pages 1-23, January.
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    8. Stephen Taiwo Onifade & Abdul Qahar Khatir & Ahmet Ay & Murat Canitez, 2022. "Reviewing the Trade Openness, Domestic Investment, and Economic Growth Nexus: Contemporary Policy Implications for the MENA Region," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 14(2), pages 489-512, June.

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