How Corruption affect Growth in MENA region? Fresh Evidence from a Panel Cointegration Analysis

This paper aims at analyzing the effects of corruption on investment and growth in 15 Middle East and North African (MENA) countries during the period 1985-2013. We used the International Country Risk Guide (ICRG) corruption index and we conducted a panel cointegration analysis and Granger causality procedure to detect the dynamic relationships between the variables. The main findings of this paper show that corruption is a serious hurdle to economic growth in MENA countries since it affects investment activities and foreign direct investment inflows. In this case, policymakers have to implement effective anticorruption strategies to avoid the epidemic of corruption

Credit Information, Guarantees and Non-Performing Loans

The aim of this paper is to study the effect of the credit quality information and the guarantees strength on the level of nonperforming loans in some MENA countries. To this end we apply a dynamic panel modelling and we use annual data which covers the period 2004-2011. The empirical results show that the information credit collected by the private or the public agencies affects negatively the level of nonperforming loans. The same result was found between the level of guarantees and the level of NPLs

Trade liberalization, FDI inflows, Environmental quality and Economic growth: A comparative analysis between Tunisia and Morocco

The aim of this research is to investigate the economic impacts of the trade liberalization on the environmental quality in Tunisia and Morocco. Specifically, the paper inspects whether liberalization of the trade sector has harmed the quality of the environment in both countries. To this end, we conduct various econometric models: a VECM and cointegration techniques for single country case study and a Panel VECM and Panel cointegration when using data of both country as a group. We also include a dummy variable in each model to see the real impact of trade liberalization for both countries. In the empirical section, we found bidirectional causality between FDI and CO2. This implies that the nature of FDI inflows to Morocco and Tunisia are not clean FDI. These results show that trade liberalization has a negative impact on environmental. The paper concludes that although trade liberalization boosted the economies of both countries by creating new employment opportunities, liberalization has harmed the environment

The duration of bank relationships and the performance of Tunisian firms

In this article, we investigate the link between the duration of bank relationships and its consequences on the performance of Tunisian firms. Performance is measured by the return on equity (ROE) and the return on Assets (ROA). We collected data of 100 Tunisian companies for the period of 2000-2007. Applying panel data estimation, our results opine that the cost of credit decreases the performance of Tunisian firms while the duration of bank relationships improves their performance and increase their profitability

Trade liberalization, FDI inflows, Environmental quality and Economic growth: A comparative analysis between Tunisia and Morocco

The aim of this research is to investigate the economic impacts of the trade liberalization on the environmental quality in Tunisia and Morocco. Specifically, the paper inspects whether liberalization of the trade sector has harmed the quality of the environment in both countries. To this end, we conduct various econometric models: a VECM and cointegration techniques for single country case study and a Panel VECM and Panel cointegration when using data of both country as a group. We also include a dummy variable in each model to see the real impact of trade liberalization for both countries. In the empirical section, we found bidirectional causality between FDI and CO2. This implies that the nature of FDI inflows to Morocco and Tunisia are not clean FDI. These results show that trade liberalization has a negative impact on environmental. The paper concludes that although trade liberalization boosted the economies of both countries by creating new employment opportunities, liberalization has harmed the environment

Did banks and financial markets developments lead to economic growth in MENA region? Evidence from Dynamic panel data estimation

This study examines the consequences of banks and stock markets developments on economic growth for eleven Middle Eastern and North African (MENA) countries for the period from 1995 to 2010. We perform dynamic panel data estimation and we use GMM estimator as suggested by Arellano and Bond (1991). The overall results suggest a positive relationship between banking and financial developments and economic growth. The results reveal that stock markets in MENA countries are still at an early stage of development and the sector needs the implementation of deep policy reforms to attract investors and to promote the contribution of the financial market in economic development

Corruption, FDI and Growth: All the truths of a corrupted regime before and after the social upsurge in Tunisia

The aim of this paper is to investigate the dynamic relationship between corruption, investment and economic growth in Tunisia within a multivariate framework. In the empirical section we use data span from 1976 to 2013 and we perform a vector error correction model and cointegartion technique to detect causality between corruption, investment, economic growth, credit to the private sector and foreign direct investment. The main findings of this paper show that corruption hampered Tunisia economic growth in the short-run and the long run as well. Corruption could be the main reason of the slowdown of investment activities and the low inflow of capital. Another important conclusion was revealed in this paper is that corruption get worsened in the period that follows the social upsurge of December 2010. Therefore, the main goals of the so called “revolution” are from being achieved yet. Hence, more works are needed to fight corruption in Tunisia

Credit Information, Guarantees and Non-Performing Loans

The aim of this paper is to study the effect of the credit quality information and the guarantees strength on the level of nonperforming loans in some MENA countries. To this end we apply a dynamic panel modelling and we use annual data which covers the period 2004-2011. The empirical results show that the information credit collected by the private or the public agencies affects negatively the level of nonperforming loans. The same result was found between the level of guarantees and the level of NPLs

How Corruption affect Growth in MENA region? Fresh Evidence from a Panel Cointegration Analysis

This paper aims at analyzing the effects of corruption on investment and growth in 15 Middle East and North African (MENA) countries during the period 1985-2013. We used the International Country Risk Guide (ICRG) corruption index and we conducted a panel cointegration analysis and Granger causality procedure to detect the dynamic relationships between the variables. The main findings of this paper show that corruption is a serious hurdle to economic growth in MENA countries since it affects investment activities and foreign direct investment inflows. In this case, policymakers have to implement effective anticorruption strategies to avoid the epidemic of corruption

The duration of bank relationships and the performance of Tunisian firms

In this article, we investigate the link between the duration of bank relationships and its consequences on the performance of Tunisian firms. Performance is measured by the return on equity (ROE) and the return on Assets (ROA). We collected data of 100 Tunisian companies for the period of 2000-2007. Applying panel data estimation, our results opine that the cost of credit decreases the performance of Tunisian firms while the duration of bank relationships improves their performance and increase their profitability