Liquidity Creation and Economic Growth: Are They Monotonically Related? Evidence from MENA Countries

Almeshari, Ali and Bin Dato Haji Yahya, Mohamed Hisham and Bin Kamarudin, Fakarudin and Abd Hamid, Sha’ari (2023) Liquidity Creation and Economic Growth: Are They Monotonically Related? Evidence from MENA Countries. Economies, 11 (1). p. 24. ISSN 2227-7099

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Abstract

Over the period 2000–2019, we reexamine the connection between finance, as measured by one of the primary banking sector functions—liquidity creation (LC)—and economic growth (EG) in 10 MENA countries panel. In a scenario seen as a dynamic heterogeneous panel, pooled mean group estimates demonstrate that LC and EG may have a favourable long-run connection while also having no influence in the short-run. In addition, results reveal an inverted U-shaped link between LC and EG over the short-term and long-term. This indicates that an excess of financial resources may be counterproductive to development in MENA nations.

Item Type: Article
Subjects: AP Academic Press > Multidisciplinary
Depositing User: Unnamed user with email support@apacademicpress.com
Date Deposited: 17 Jun 2023 05:58
Last Modified: 18 Oct 2024 04:14
URI: http://info.openarchivespress.com/id/eprint/1579

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