مجلة البحوث القانونية و الاقتصادية
Volume 5, Numéro 1, Pages 782-802
2022-01-28

Financial Development, Governance And Their Impact On Economic Growth In Mena Countries - As A Sample

Authors : Lakhdar Abdelmalek . Youcef Souar .

Abstract

This study aims at analyzing the effect of governance and financial development on growth in Middle East and North Africa countries as a sample namely: Egypt, Iran, Jordan, Lebanon, Morocco, Oman, Saudi Arabia and Tunisia. It has been sufficed of these countries because the rest does not have stock markets; this study lasted from 1996 to 2017. The study outcomes revealed a crucial importance of governance and financial development, thus, the governance has a significant and negative impact on economic growth in these countries due to the weakness of governance indicators implementation. With regard to the financial development variables, stock markets had no incorporeal effect, as a result, these countries has failed in attracting funds from a foreign country. However, a considerable and positive effect on growth is marked by the financial market, which played a leading role in financing development projects in these countries.

Keywords

governance ; financial development ; Economic growth ; Random Effect ; principal component analysis