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Financial Development and Income in North Africa

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  • Mina Baliamoune-Lutz

Abstract

We explore the short-run dynamics and long-run relationship between income and financial development in Algeria, Egypt, and Morocco. We use co-integration and VECM models and four indicators of financial development. The empirical results indicate that there is a long-run relationship between income and each financial development indicator, except credit to the private sector in Algeria. On the other hand, Granger-causality test results indicate that the evidence on the direction of causality is mixed. Copyright International Atlantic Economic Society 2008

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  • Mina Baliamoune-Lutz, 2008. "Financial Development and Income in North Africa," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(4), pages 422-432, November.
    • Handle: RePEc:kap:iaecre:v:14:y:2008:i:4:p:422-432:10.1007/s11294-008-9176-5
    DOI: 10.1007/s11294-008-9176-5
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    Cited by:

    1. Kar, Muhsin & NazlIoglu, Saban & AgIr, Hüseyin, 2011. "Financial development and economic growth nexus in the MENA countries: Bootstrap panel granger causality analysis," Economic Modelling, Elsevier, vol. 28(1-2), pages 685-693, January.
    2. Phouphet Kyophilavong & Gazi Salah Uddin & Muhammad Shahbaz, 2016. "The Nexus between Financial Development and Economic Growth in Lao PDR," Global Business Review, International Management Institute, vol. 17(2), pages 303-317, April.
    3. Uddin, Gazi Salah & Sjö, Bo & Shahbaz, Muhammad, 2013. "The causal nexus between financial development and economic growth in Kenya," Economic Modelling, Elsevier, vol. 35(C), pages 701-707.
    4. Mina Baliamoune-Lutz, 2010. "Financial Development and Income in Developing Countries," ICER Working Papers 09-2010, ICER - International Centre for Economic Research.
    5. Phouphet KYOPHILAVONG & Gazi Salah Uddin & Muhammad Shahbaz, 2014. "The Nexus Between Financial Development and Economic Growth in Laos," Working Papers 2014-447, Department of Research, Ipag Business School.
    6. Ali M. Kutan & Nahla Samargandi & Kazi Sohag, 2017. "Does Institutional Quality Matter for Financial Development and Growth? Further Evidence from MENA Countries," Australian Economic Papers, Wiley Blackwell, vol. 56(3), pages 228-248, September.
    7. Zouheir Abida & Imen Mohamed Sghaier & Nahed Zghidi, 2015. "Financial Development and Economic Growth: Evidence from North African Countries," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 17-33, April.
    8. Zahra (Mila) Elmi & Faezeh Ariani, 2011. "Financial Development and the Distribution of Income in MENA," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 16(1), pages 1-11, winter.
    9. Sanzida Begum & Mehedi Hasan & Jabed Hossain, 2023. "Impacts of FDI on economic developments of Bangladesh: Considering GDP, Export and Industry Value," International Journal of Science and Business, IJSAB International, vol. 19(1), pages 118-127.

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    More about this item

    Keywords

    North Africa; Financial development; Economic growth; VECM; Arab countries; E20; G40; G2;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G2 - Financial Economics - - Financial Institutions and Services

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