nep-fdg New Economics Papers
on Financial Development and Growth
Issue of 2007‒06‒23
two papers chosen by
Iulia Igescu
Global Insight, GmbH

  1. The Financial Development and Economic Growth Nexus for Turkey By HALICIOGLU, Ferda
  2. Financial Sector Reforms and Prospects for Financial Integration in Maghreb Countries By Juan Sole; Patricia D Brenner; Eric De Vrijer; Abdelhak Senhadji; Marina Moretti; Gabriel Sensenbrenner; Amor Tahari

  1. By: HALICIOGLU, Ferda
    Abstract: This study investigates the validity of the demand-pulling and the supply-leading hypotheses using annual data from 1968 to 2005. The bounds testing approach to cointegration is conducted to establish the existence of a long-run relationship between financial development and economic growth. An augmented form of Granger causality analysis is implemented to identify the direction of causality among the variables both in the short-run and the long-run. The empirical findings suggest uni-directional causation from financial development to economic growth.
    Keywords: Growth; financial intermediation; causality; cointegration; Turkey
    JEL: C22 F40 O52
    Date: 2007
  2. By: Juan Sole; Patricia D Brenner; Eric De Vrijer; Abdelhak Senhadji; Marina Moretti; Gabriel Sensenbrenner; Amor Tahari
    Abstract: A healthy and dynamic financial sector is essential to achieving high and sustainable economic growth in the Maghreb region-Algeria, Libya, Mauritania, Morocco, and Tunisia. Financial integration within the Maghreb region will help deepen financial markets, increase their efficiency, and enhance the resilience of economies to shocks. It can also play a catalyst role for the global financial integration of the Maghreb region. This paper provides an overview of the financial systems, takes stock of the reform effort and highlights the challenges ahead, and examines the prospects for financial integration in the five Maghreb countries.
    Date: 2007–05–31

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