Financial liberalization plays a major role in stimulating economic growth. In light of this, the... more Financial liberalization plays a major role in stimulating economic growth. In light of this, the paper examines the impact of financial liberalization on macroeconomic performance in South Africa by using time series econometric analysis over the time period 1990-2011. The study uses GDP, the dependent variable as a measure of economic growth and the following macroeconomic variables: inflation, lending rate exchange rate and financial deepening (M2/GDP) as financial liberalization indices. To confirm the order of integration, the Augmented Dickey-Fuller and Phillips Perron unit root tests are employed. The study uses the Johansen co-integration and the Error Correction Mechanism to obtain long run and short run coefficients. Findings of the study are that inflation, lending rate and financial deepening have positive influence on economic growth whilst exchange rate has a negative impact on economic growth. This study recommends that the government should put in place measures that stimulate investments with fair lending rates so as to deepen the financial system which in turn promotes economic growth.
Revista de Métodos Cuantitativos para la Economía y la Empresa
The present study has been conducted to examine the impact of seven of most important internal fa... more The present study has been conducted to examine the impact of seven of most important internal factors on stock prices for all listed banks in Dubai and Abu Dhabi stock markets. Pooled Least Square, Fixed Effects (FE), and Random Effects (RE) models have been used to carry out the analysis for data pertaining to 23 banks for a time period between 2014-2017. The aim of the study is to examine the most important internal factors affecting stock prices in the banking sector of United Arab Emirates, and whether internal factors determining stock prices in this sector are the same for Dubai and Abu Dhabi stock markets. The results give evidence of positive and significant impact of Earnings Per Share (EPS) and Dividend Per Share (DPS) on market price for shares, in all markets for the former and only in Abu Dhabi stock market for the later. By contrast, the study reveals a negative impact of Return on Equity (RoE), Dividend Yield (DY), and Price Earnings (P_E) on market price for shares....
his study investigates the impact of bank regulation on financial development in the MENA countri... more his study investigates the impact of bank regulation on financial development in the MENA countries for the period 1995-2014. Restrictions on activity, foreign banks, and capital were used as proxies for bank regulation. Also, bank supervisory power, independence, private monitoring, and moral hazard were used as proxies for bank supervision. Liquid liabilities, private credit, and z-score were chosen as proxies for financial development. They represent, consecutively, size, activity, and stability of the financial sector. A positive and significant impact of bank regulation was observed on all measures of financial development. The most important contribution of the present study is that, it gives evidence of an important supporting role of supervision on bank regulation, to realize its desired impact on financial development. This final result is important for the MENA countries, since data analysis shows that financial sector reform is more concentrated on regulation than supervision. Policy makers in the MENA countries need to focus more, in their financial sector reform, on bank supervision to realize the expected impact of bank regulation on financial development.
This study investigates the influence of financial liberalization on economic growth in developin... more This study investigates the influence of financial liberalization on economic growth in developing countries indirectly through their effect on financial development. It selects the size and activity of the financial system as indicators of financial development. The general agreement on trade and services (GATS) is a very useful option for developing countries to consolidate their financial sector reform to give foreign investors more certainty about financial investment opportunities in the economies of developing countries. This study chooses the level of commitments taking by developing countries in the GATS in banking sector as a measure of financial liberalization. The main objective is to examine the effect of developing countries financial liberalization commitments at the GATS on economic growth through their effect on the size and activity of the financial sector. According to the analysis conducted, the results show no real effect of the level of commitments taking by dev...
This study investigates the impact of foreign banks entry on financial development in Lebanon for... more This study investigates the impact of foreign banks entry on financial development in Lebanon for the period between 1995 and 2014. We use the number of foreign banks to total banks as measure of foreign banks entry and liquid liabilities, private credit by deposit monetary institutions and domestic credit to private sector as measures of financial development. Liquid liabilities represent the size of the financial sector, while private credit by deposit monetary institutions and domestic credit to private sector represent the activity of the financial sector. We find positive real effect of the level of foreign banks entry on financial development. This result suggests that foreign banks entry play a crucial role in developing the financial sector in Lebanon for the period between 1995 and 2014 . By contrast, the results of the present study contradict with other studies that claim that foreign banks entry have negative effects on financial development in developing countries .
Modernizing Academic Teaching and Research in Business and Economics, 2017
Globally, the rules and regulations of higher education are for the betterment of economies and s... more Globally, the rules and regulations of higher education are for the betterment of economies and social uplift. The objective of this study is to develop a link between governance indicators and educational outcomes. The current study proposes a framework covering three broad categories of governance indicators: political governance, economic governance and institutional dimension of governance. These three categories are accompanied by five educational factors: higher education expenditures, higher education enrolment, higher education expenditures per student, literacy rate, scientific and technical journal articles and economic growth. The study covers three countries: Syria, Lebanon and Jordan for the period 2000–2011. The OLS model is employed for estimating the possible links between governance indicators and educational outcomes. The results show conflicting effects of governance on higher education indicators, but in most of the cases, it is not significant.
T his study investigates the impact of bank regulation on financial development in the MENA count... more T his study investigates the impact of bank regulation on financial development in the MENA countries for the period 1995-2014. Restrictions on activity, foreign banks, and capital were used as proxies for bank regulation. Also, bank supervisory power, independence, private monitoring, and moral hazard were used as proxies for bank supervision. Liquid liabilities, private credit, and z-score were chosen as proxies for financial development. They represent, consecutively, size, activity, and stability of the financial sector. A positive and significant impact of bank regulation was observed on all measures of financial development. The most important contribution of the present study is that, it gives evidence of an important supporting role of supervision on bank regulation, to realize its desired impact on financial development. This final result is important for the MENA countries, since data analysis shows that financial sector reform is more concentrated on regulation than super...
International Journal of Economics and Financial Issues, 2016
This study investigates the influence of financial liberalization on economic growth in developin... more This study investigates the influence of financial liberalization on economic growth in developing countries indirectly through their effect on financial development. It selects the size and activity of the financial system as indicators of financial development. The general agreement on trade and services (GATS) is a very useful option for developing countries to consolidate their financial sector reform to give foreign investors more certainty about financial investment opportunities in the economies of developing countries. This study chooses the level of commitments taking by developing countries in the GATS in banking sector as a measure of financial liberalization. The main objective is to examine the effect of developing countries financial liberalization commitments at the GATS on economic growth through their effect on the size and activity of the financial sector. According to the analysis conducted, the results show no real effect of the level of commitments taking by dev...
Journal of Financial Regulation and Compliance, 2019
Purpose This paper aims to examine the impact of bank regulation and supervision on financial sta... more Purpose This paper aims to examine the impact of bank regulation and supervision on financial stability. Financial sector reform, especially in developing countries, takes the form of a sudden adjustment in regulation and supervision. The main objective of the paper is to examine whether this fast and sudden adjustment in regulation and supervision has an undesirable impact on financial stability. Furthermore, the paper examines the role of real economic development in determining the impact of financial reform on financial stability. Design/methodology/approach Empirically, on a sample of 57 developing countries over the period 2000-2013, the author explored the impact of bank regulation and supervision on financial stability for different sub-groups of countries. The division is based on the real level of economic development and, most importantly, on the speed of adjustment in regulation and supervision. The study uses the cross-sectional–ordinary least square model. Each country...
Les résultats empiriques de l'effet de l'ouverture aux banques étrangères sur la croissance écono... more Les résultats empiriques de l'effet de l'ouverture aux banques étrangères sur la croissance économique des pays en développement ..
This study investigates the impact of foreign banks entry on financial development in the MENA co... more This study investigates the impact of foreign banks entry on financial development in the MENA countries. We use the relative number of foreign banks as proxy for foreign banks entry, and liquid liabilities and claims on private sector as share of GDP as proxies for the financial development. We find a positive long-term and significant effect of foreign banks entry on the size and activity of financial development. We also find that the effect of foreign banks entry depends on the time period and the level of economic development. This result seems to suggest that MENA countries should not be taken as one group when studying the impact of financial sector reform on financial development. The impact of foreign bank entry is positive for the 10 richest MENA countries, while it is negative (but not statistically significant) or negligible for the group of less developed MENA countries. The last result indicates that there is a cherry picking phenomenon in less developed MENA countries. The negative effect of foreign banks cherry picking is diminished over time, since the period 2005-2014 show more positive impact of foreign bank entry on financial development, than the period 1995-2004. This result gives evidence that foreign banks need time to overcome informational disadvantage caused by geographical and cultural distance, to expand their lending into soft information borrowers, and to realize the expected positive effect of its entry on financial development in poorest MENA countries.
Dans le cadre d'un travail sur les pays en développement, cette thèse analyse les effets de la li... more Dans le cadre d'un travail sur les pays en développement, cette thèse analyse les effets de la libéralisation du commerce des services financiers sur le développement économique. La théorie prévoit des effets positifs de la libéralisation sur les économies. Cette étude y participe en explorant des nouvelles formes de corrélation entre la libéralisation et le développement économique. La méthode utilisée dans notre recherche est de traiter de la libéralisation du commerce des services en abordant trois de ces aspects. Il s'agit donc de l'aspect théorique, de l'aspect légal et de l'aspect empirique.
Journal of financial regulation and compliance, 2019
This paper aims to examine the impact of bank regulation and supervision on financial stability. ... more This paper aims to examine the impact of bank regulation and supervision on financial stability. Financial sector reform, especially in developing countries, takes the form of a sudden adjustment in regulation and supervision. The main objective of the paper is to examine whether this fast and sudden adjustment in regulation and supervision has an undesirable impact on financial stability. Furthermore, the paper examines the role of real economic development in determining the impact of financial reform on financial stability.
This study investigates the impact of foreign banks entry on financial development in the MENA co... more This study investigates the impact of foreign banks entry on financial development in the MENA countries. We use the relative number of foreign banks as proxy for foreign banks entry, and liquid liabilities and claims on private sector as share of GDP as proxies for the financial development. We find a positive long-term and significant effect of foreign banks entry on the size and activity of financial development. We also find that the effect of foreign banks entry depends on the time period and the level of economic development. This result seems to suggest that MENA countries should not be taken as one group when studying the impact of financial sector reform on financial development. The impact of foreign bank entry is positive for the 10 richest MENA countries, while it is negative (but not statistically significant) or negligible for the group of less developed MENA countries. The last result indicates that there is a cherry picking phenomenon in less developed MENA countries. The negative effect of foreign banks cherry picking is diminished over time, since the period 2005-2014 show more positive impact of foreign bank entry on financial development, than the period 1995-2004. This result gives evidence that foreign banks need time to overcome informational disadvantage caused by geographical and cultural distance, to expand their lending into soft information borrowers, and to realize the expected positive effect of its entry on financial development in poorest MENA countries.
his study investigates the impact of bank regulation on financial development in the MENA countri... more his study investigates the impact of bank regulation on financial development in the MENA countries for the period 1995-2014. Restrictions on activity, foreign banks, and capital were used as proxies for bank regulation. Also, bank supervisory power, independence, private monitoring, and moral hazard were used as proxies for bank supervision. Liquid liabilities, private credit, and z-score were chosen as proxies for financial development. They represent, consecutively, size, activity, and stability of the financial sector. A positive and significant impact of bank regulation was observed on all measures of financial development. The most important contribution of the present study is that, it gives evidence of an important supporting role of supervision on bank regulation, to realize its desired impact on financial development. This final result is important for the MENA countries, since data analysis shows that financial sector reform is more concentrated on regulation than supervision. Policy makers in the MENA countries need to focus more, in their financial sector reform, on bank supervision to realize the expected impact of bank regulation on financial development.
Economic literature has shown the important and prominent role of financial development in econom... more Economic literature has shown the important and prominent role of financial development in economic development and growth, through the effective pooling and allocation of national savings towards investments in support of economic development. Hence, it is highly important to look for the real determinants of financial development. This study investigates the determinants of the financial development of Syria, Lebanon and Jordan for the period between 1995 and 2014, by applying the method of Ordinary Least Squares (OLS), to a set of determinants adopted in previous studies. The study found a statistically significant effect of only three of the nine determinants tested on the level of private credit by depository institutions (financial sector activity). It also concludes a statistically significant effect of only five determinants on the level of Liquid Liabilities (financial sector size). The determinants are: inflation, bank concentration, rule of law, control of corruption, contract enforcement and improving supervision of banks. Reforms that contribute in reducing corruption, enforcing contracts, improving the rule of law, improving supervision on banks, reducing the level of inflation and the level of bank concentration, are the most important factors that we need to focus on in the long run, to achieve financial development (size and activity).This in turn contributes to real economic development in Syria, Lebanon and Jordan.
International journal of economics and financial issues, 2016
This study investigates the influence of financial liberalization on economic growth in developin... more This study investigates the influence of financial liberalization on economic growth in developing countries indirectly through their effect on financial development. It selects the size and activity of the financial system as indicators of financial development. The general agreement on trade and services (GATS) is a very useful option for developing countries to consolidate their financial sector reform to give foreign investors more certainty about financial investment opportunities in the economies of developing countries. This study chooses the level of commitments taking by developing countries in the GATS in banking sector as a measure of financial liberalization. The main objective is to examine the effect of developing countries financial liberalization commitments at the GATS on economic growth through their effect on the size and activity of the financial sector. According to the analysis conducted, the results show no real effect of the level of commitments taking by developing countries in the GATS on economic growth through their effect on the size and activity of financial development. Even though the effect of financial development on economic growth is positive, the effect of financial liberalization through the GATS on financial development is almost zero.
This study investigates the impact of financial liberalization on economic growth through its eff... more This study investigates the impact of financial liberalization on economic growth through its effect on the size and activity of the financial sector in a set of developing countries. We use the relative number and share of Foreign banks as proxies for financial liberalization and liquid liabilities and claims on private sector as share of GDP as proxies for the financial development. We find a negative real effect of the level of Foreign banks entry on the size and activity of financial development. However, the effect of financial development on economic growth is positive. This result contradicts the first component of Levine’s theory that Foreign bank’s entry has positive effect on financial development but confirms the second component that financial development has positive effect on economic growth. Our result is also consistent with Ghosh who finds that a greater banking sector openness reduces economic growth in developing countries.
Financial liberalization plays a major role in stimulating economic growth. In light of this, the... more Financial liberalization plays a major role in stimulating economic growth. In light of this, the paper examines the impact of financial liberalization on macroeconomic performance in South Africa by using time series econometric analysis over the time period 1990-2011. The study uses GDP, the dependent variable as a measure of economic growth and the following macroeconomic variables: inflation, lending rate exchange rate and financial deepening (M2/GDP) as financial liberalization indices. To confirm the order of integration, the Augmented Dickey-Fuller and Phillips Perron unit root tests are employed. The study uses the Johansen co-integration and the Error Correction Mechanism to obtain long run and short run coefficients. Findings of the study are that inflation, lending rate and financial deepening have positive influence on economic growth whilst exchange rate has a negative impact on economic growth. This study recommends that the government should put in place measures that stimulate investments with fair lending rates so as to deepen the financial system which in turn promotes economic growth.
Revista de Métodos Cuantitativos para la Economía y la Empresa
The present study has been conducted to examine the impact of seven of most important internal fa... more The present study has been conducted to examine the impact of seven of most important internal factors on stock prices for all listed banks in Dubai and Abu Dhabi stock markets. Pooled Least Square, Fixed Effects (FE), and Random Effects (RE) models have been used to carry out the analysis for data pertaining to 23 banks for a time period between 2014-2017. The aim of the study is to examine the most important internal factors affecting stock prices in the banking sector of United Arab Emirates, and whether internal factors determining stock prices in this sector are the same for Dubai and Abu Dhabi stock markets. The results give evidence of positive and significant impact of Earnings Per Share (EPS) and Dividend Per Share (DPS) on market price for shares, in all markets for the former and only in Abu Dhabi stock market for the later. By contrast, the study reveals a negative impact of Return on Equity (RoE), Dividend Yield (DY), and Price Earnings (P_E) on market price for shares....
his study investigates the impact of bank regulation on financial development in the MENA countri... more his study investigates the impact of bank regulation on financial development in the MENA countries for the period 1995-2014. Restrictions on activity, foreign banks, and capital were used as proxies for bank regulation. Also, bank supervisory power, independence, private monitoring, and moral hazard were used as proxies for bank supervision. Liquid liabilities, private credit, and z-score were chosen as proxies for financial development. They represent, consecutively, size, activity, and stability of the financial sector. A positive and significant impact of bank regulation was observed on all measures of financial development. The most important contribution of the present study is that, it gives evidence of an important supporting role of supervision on bank regulation, to realize its desired impact on financial development. This final result is important for the MENA countries, since data analysis shows that financial sector reform is more concentrated on regulation than supervision. Policy makers in the MENA countries need to focus more, in their financial sector reform, on bank supervision to realize the expected impact of bank regulation on financial development.
This study investigates the influence of financial liberalization on economic growth in developin... more This study investigates the influence of financial liberalization on economic growth in developing countries indirectly through their effect on financial development. It selects the size and activity of the financial system as indicators of financial development. The general agreement on trade and services (GATS) is a very useful option for developing countries to consolidate their financial sector reform to give foreign investors more certainty about financial investment opportunities in the economies of developing countries. This study chooses the level of commitments taking by developing countries in the GATS in banking sector as a measure of financial liberalization. The main objective is to examine the effect of developing countries financial liberalization commitments at the GATS on economic growth through their effect on the size and activity of the financial sector. According to the analysis conducted, the results show no real effect of the level of commitments taking by dev...
This study investigates the impact of foreign banks entry on financial development in Lebanon for... more This study investigates the impact of foreign banks entry on financial development in Lebanon for the period between 1995 and 2014. We use the number of foreign banks to total banks as measure of foreign banks entry and liquid liabilities, private credit by deposit monetary institutions and domestic credit to private sector as measures of financial development. Liquid liabilities represent the size of the financial sector, while private credit by deposit monetary institutions and domestic credit to private sector represent the activity of the financial sector. We find positive real effect of the level of foreign banks entry on financial development. This result suggests that foreign banks entry play a crucial role in developing the financial sector in Lebanon for the period between 1995 and 2014 . By contrast, the results of the present study contradict with other studies that claim that foreign banks entry have negative effects on financial development in developing countries .
Modernizing Academic Teaching and Research in Business and Economics, 2017
Globally, the rules and regulations of higher education are for the betterment of economies and s... more Globally, the rules and regulations of higher education are for the betterment of economies and social uplift. The objective of this study is to develop a link between governance indicators and educational outcomes. The current study proposes a framework covering three broad categories of governance indicators: political governance, economic governance and institutional dimension of governance. These three categories are accompanied by five educational factors: higher education expenditures, higher education enrolment, higher education expenditures per student, literacy rate, scientific and technical journal articles and economic growth. The study covers three countries: Syria, Lebanon and Jordan for the period 2000–2011. The OLS model is employed for estimating the possible links between governance indicators and educational outcomes. The results show conflicting effects of governance on higher education indicators, but in most of the cases, it is not significant.
T his study investigates the impact of bank regulation on financial development in the MENA count... more T his study investigates the impact of bank regulation on financial development in the MENA countries for the period 1995-2014. Restrictions on activity, foreign banks, and capital were used as proxies for bank regulation. Also, bank supervisory power, independence, private monitoring, and moral hazard were used as proxies for bank supervision. Liquid liabilities, private credit, and z-score were chosen as proxies for financial development. They represent, consecutively, size, activity, and stability of the financial sector. A positive and significant impact of bank regulation was observed on all measures of financial development. The most important contribution of the present study is that, it gives evidence of an important supporting role of supervision on bank regulation, to realize its desired impact on financial development. This final result is important for the MENA countries, since data analysis shows that financial sector reform is more concentrated on regulation than super...
International Journal of Economics and Financial Issues, 2016
This study investigates the influence of financial liberalization on economic growth in developin... more This study investigates the influence of financial liberalization on economic growth in developing countries indirectly through their effect on financial development. It selects the size and activity of the financial system as indicators of financial development. The general agreement on trade and services (GATS) is a very useful option for developing countries to consolidate their financial sector reform to give foreign investors more certainty about financial investment opportunities in the economies of developing countries. This study chooses the level of commitments taking by developing countries in the GATS in banking sector as a measure of financial liberalization. The main objective is to examine the effect of developing countries financial liberalization commitments at the GATS on economic growth through their effect on the size and activity of the financial sector. According to the analysis conducted, the results show no real effect of the level of commitments taking by dev...
Journal of Financial Regulation and Compliance, 2019
Purpose This paper aims to examine the impact of bank regulation and supervision on financial sta... more Purpose This paper aims to examine the impact of bank regulation and supervision on financial stability. Financial sector reform, especially in developing countries, takes the form of a sudden adjustment in regulation and supervision. The main objective of the paper is to examine whether this fast and sudden adjustment in regulation and supervision has an undesirable impact on financial stability. Furthermore, the paper examines the role of real economic development in determining the impact of financial reform on financial stability. Design/methodology/approach Empirically, on a sample of 57 developing countries over the period 2000-2013, the author explored the impact of bank regulation and supervision on financial stability for different sub-groups of countries. The division is based on the real level of economic development and, most importantly, on the speed of adjustment in regulation and supervision. The study uses the cross-sectional–ordinary least square model. Each country...
Les résultats empiriques de l'effet de l'ouverture aux banques étrangères sur la croissance écono... more Les résultats empiriques de l'effet de l'ouverture aux banques étrangères sur la croissance économique des pays en développement ..
This study investigates the impact of foreign banks entry on financial development in the MENA co... more This study investigates the impact of foreign banks entry on financial development in the MENA countries. We use the relative number of foreign banks as proxy for foreign banks entry, and liquid liabilities and claims on private sector as share of GDP as proxies for the financial development. We find a positive long-term and significant effect of foreign banks entry on the size and activity of financial development. We also find that the effect of foreign banks entry depends on the time period and the level of economic development. This result seems to suggest that MENA countries should not be taken as one group when studying the impact of financial sector reform on financial development. The impact of foreign bank entry is positive for the 10 richest MENA countries, while it is negative (but not statistically significant) or negligible for the group of less developed MENA countries. The last result indicates that there is a cherry picking phenomenon in less developed MENA countries. The negative effect of foreign banks cherry picking is diminished over time, since the period 2005-2014 show more positive impact of foreign bank entry on financial development, than the period 1995-2004. This result gives evidence that foreign banks need time to overcome informational disadvantage caused by geographical and cultural distance, to expand their lending into soft information borrowers, and to realize the expected positive effect of its entry on financial development in poorest MENA countries.
Dans le cadre d'un travail sur les pays en développement, cette thèse analyse les effets de la li... more Dans le cadre d'un travail sur les pays en développement, cette thèse analyse les effets de la libéralisation du commerce des services financiers sur le développement économique. La théorie prévoit des effets positifs de la libéralisation sur les économies. Cette étude y participe en explorant des nouvelles formes de corrélation entre la libéralisation et le développement économique. La méthode utilisée dans notre recherche est de traiter de la libéralisation du commerce des services en abordant trois de ces aspects. Il s'agit donc de l'aspect théorique, de l'aspect légal et de l'aspect empirique.
Journal of financial regulation and compliance, 2019
This paper aims to examine the impact of bank regulation and supervision on financial stability. ... more This paper aims to examine the impact of bank regulation and supervision on financial stability. Financial sector reform, especially in developing countries, takes the form of a sudden adjustment in regulation and supervision. The main objective of the paper is to examine whether this fast and sudden adjustment in regulation and supervision has an undesirable impact on financial stability. Furthermore, the paper examines the role of real economic development in determining the impact of financial reform on financial stability.
This study investigates the impact of foreign banks entry on financial development in the MENA co... more This study investigates the impact of foreign banks entry on financial development in the MENA countries. We use the relative number of foreign banks as proxy for foreign banks entry, and liquid liabilities and claims on private sector as share of GDP as proxies for the financial development. We find a positive long-term and significant effect of foreign banks entry on the size and activity of financial development. We also find that the effect of foreign banks entry depends on the time period and the level of economic development. This result seems to suggest that MENA countries should not be taken as one group when studying the impact of financial sector reform on financial development. The impact of foreign bank entry is positive for the 10 richest MENA countries, while it is negative (but not statistically significant) or negligible for the group of less developed MENA countries. The last result indicates that there is a cherry picking phenomenon in less developed MENA countries. The negative effect of foreign banks cherry picking is diminished over time, since the period 2005-2014 show more positive impact of foreign bank entry on financial development, than the period 1995-2004. This result gives evidence that foreign banks need time to overcome informational disadvantage caused by geographical and cultural distance, to expand their lending into soft information borrowers, and to realize the expected positive effect of its entry on financial development in poorest MENA countries.
his study investigates the impact of bank regulation on financial development in the MENA countri... more his study investigates the impact of bank regulation on financial development in the MENA countries for the period 1995-2014. Restrictions on activity, foreign banks, and capital were used as proxies for bank regulation. Also, bank supervisory power, independence, private monitoring, and moral hazard were used as proxies for bank supervision. Liquid liabilities, private credit, and z-score were chosen as proxies for financial development. They represent, consecutively, size, activity, and stability of the financial sector. A positive and significant impact of bank regulation was observed on all measures of financial development. The most important contribution of the present study is that, it gives evidence of an important supporting role of supervision on bank regulation, to realize its desired impact on financial development. This final result is important for the MENA countries, since data analysis shows that financial sector reform is more concentrated on regulation than supervision. Policy makers in the MENA countries need to focus more, in their financial sector reform, on bank supervision to realize the expected impact of bank regulation on financial development.
Economic literature has shown the important and prominent role of financial development in econom... more Economic literature has shown the important and prominent role of financial development in economic development and growth, through the effective pooling and allocation of national savings towards investments in support of economic development. Hence, it is highly important to look for the real determinants of financial development. This study investigates the determinants of the financial development of Syria, Lebanon and Jordan for the period between 1995 and 2014, by applying the method of Ordinary Least Squares (OLS), to a set of determinants adopted in previous studies. The study found a statistically significant effect of only three of the nine determinants tested on the level of private credit by depository institutions (financial sector activity). It also concludes a statistically significant effect of only five determinants on the level of Liquid Liabilities (financial sector size). The determinants are: inflation, bank concentration, rule of law, control of corruption, contract enforcement and improving supervision of banks. Reforms that contribute in reducing corruption, enforcing contracts, improving the rule of law, improving supervision on banks, reducing the level of inflation and the level of bank concentration, are the most important factors that we need to focus on in the long run, to achieve financial development (size and activity).This in turn contributes to real economic development in Syria, Lebanon and Jordan.
International journal of economics and financial issues, 2016
This study investigates the influence of financial liberalization on economic growth in developin... more This study investigates the influence of financial liberalization on economic growth in developing countries indirectly through their effect on financial development. It selects the size and activity of the financial system as indicators of financial development. The general agreement on trade and services (GATS) is a very useful option for developing countries to consolidate their financial sector reform to give foreign investors more certainty about financial investment opportunities in the economies of developing countries. This study chooses the level of commitments taking by developing countries in the GATS in banking sector as a measure of financial liberalization. The main objective is to examine the effect of developing countries financial liberalization commitments at the GATS on economic growth through their effect on the size and activity of the financial sector. According to the analysis conducted, the results show no real effect of the level of commitments taking by developing countries in the GATS on economic growth through their effect on the size and activity of financial development. Even though the effect of financial development on economic growth is positive, the effect of financial liberalization through the GATS on financial development is almost zero.
This study investigates the impact of financial liberalization on economic growth through its eff... more This study investigates the impact of financial liberalization on economic growth through its effect on the size and activity of the financial sector in a set of developing countries. We use the relative number and share of Foreign banks as proxies for financial liberalization and liquid liabilities and claims on private sector as share of GDP as proxies for the financial development. We find a negative real effect of the level of Foreign banks entry on the size and activity of financial development. However, the effect of financial development on economic growth is positive. This result contradicts the first component of Levine’s theory that Foreign bank’s entry has positive effect on financial development but confirms the second component that financial development has positive effect on economic growth. Our result is also consistent with Ghosh who finds that a greater banking sector openness reduces economic growth in developing countries.
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