Abstract
AbstractThis contribution investigates the relationships between financial development, trade openness and economic growth on a panel of four North African countries (Tunisia, Morocco, Algeria and Egypt), over a 5‐year period from 1991 to 2015. In fact, using the generalized method of moment (GMM) in a panel data analysis, we found strong evidence of a positive link between trade openness and economic growth. Moreover, we found that trade openness appears to be working as a complement to financial development and that its effect is more pronounced in the presence of the financial development variable. Therefore, the policy implications of this study appeared clear. Hence, improvement efforts need to be driven by local‐level reforms to ensure the development of domestic financial system and take full advantage of the technology transfer induced by international trade.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.