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

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)...

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Bibliographic Details
Published in:Theoretical and applied economics 2017-03, Vol.XXIV (1), p.233-246
Main Authors: Hicham AYAD, Mostéfa BELMOKADDEM
Format: Article
Language:English
Subjects:
Financial development
Kaopen index
Milesi-Ferreti index
Trade openness
TYDL Granger causality
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Summary: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.
ISSN:1841-8678
1844-0029