The influence of capital market development on economic growth among MENA Region Countries

Series of financial crisis in the last two decades has motivated the countries in the MENA region to adopt market oriented approach to stimulate their economies. The governments in the region suffering from locked savings phenomenon explored modernizing their economic procedures with establishment a...

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Bibliographic Details
Main Authors: Mo Giuma, Intisar Jiuma, Wan Yusoff, Wan Fauziah
Format: Conference or Workshop Item
Published: 2013
Subjects:
Online Access:http://eprints.uthm.edu.my/5775/
http://eprints.uthm.edu.my/5775/1/7._Intisar.pdf
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Summary:Series of financial crisis in the last two decades has motivated the countries in the MENA region to adopt market oriented approach to stimulate their economies. The governments in the region suffering from locked savings phenomenon explored modernizing their economic procedures with establishment and development of capital market approach. These transformations were carried out in the aim that the region would elevate its growth rates to meet stability requirement prescription that would avoid widening the gap between economic and demographic growth. Much research were done in this area but most of them focused on evaluating the contribution of newly established or reactivated capital markets on the GDP growth. Some have accounted for the fact that better results could be achieved through the collaboration of the markets through easing the flows between them. This research takes these shortcomings into account and attempts to develop a framework that assists policy makers in the region to foresee the potential benefits in the future from collective actions. The sample of the study will be four main countries: Saudi Arabia, Egypt, Kuwait and Tunis. The selection accounted for representing oil exporters and oil importers categories. The data will be analyzed using three statistical techniques; Anova, simple and multiple regression technique and path analysis. The results of this study will hopefully contribute to previous academic studies as well as decision-makers in MENA to predict the effect of the transformation of the economies in the region.