FINANCIAL LIBERALIZATION AND STOCK MARKET DEVELOPMENT IN THE MENA REGION

We investigate the impact of financial liberalization on stock market development in the MENA region using data over the period from 1979 to 2014. We report a positive relationship between financial liberalization and stock market development. The size effect of this relationship tends to increase o...

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Bibliographic Details
Main Authors: Jurdi, Doureige, Khan, Hayat, Said, Rabie
Format: Conference Proceeding
Language:English
Subjects:
Democracy
Liberalization
Securities markets
Online Access:Get full text
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Summary:We investigate the impact of financial liberalization on stock market development in the MENA region using data over the period from 1979 to 2014. We report a positive relationship between financial liberalization and stock market development. The size effect of this relationship tends to increase over time following the liberalization policy decision. We also find that a variation in the impact of financial liberalization on stock market development across countries in the MENA region. The effect of financial liberalization on stock market development is significantly larger in countries with common law origins, higher level of democracy, earlier liberalization policy date and smaller government sector.
ISSN:1849-6903
1849-6903