The impact of abundance of natural resources and institutional quality on banking sector development in Algeria
Keywords:
development of the Algerian banking sector, institutional quality, abundance of natural resources, cointegration test
Abstract
This paper aim to examine the impact of institutional quality on development of Algerian banking sector, in the presence of abundance of natural resources condition, during the period (1984-2015). We employ two measures of banking development (credit to private sector, and M2/GDP) to build an indicator of banking development using principal component analysis (PCA), and political risk index to measure institutional quality. using cointegration test and error correction model (ECM), the results suggest that each of institutional quality and the abundance of natural resources have a positive and significant impact on banking development, while the abundance of natural resources in Algeria reduces the positive effects of institutional quality on banking development.
References
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Douglass C. North (1991) , Institutions , The Journal of Economic Perspectives , Vol. 5, No. 1 , pp 97.
Hatra Voghouei, M. Azali, and Mohammad Ali Jamali (2011) , A survey of the determinants of financial development , Asian-Pacific Economic Literature , Volume 25, Issue 2, pp 06.
Charles P. Himmelberg , R. Glenn Hubbard , Inessa Love (2002) , Investor Protection, Ownership, and the Cost of Capital , POLICY RESEARCH WORKING PAPER 2834 , The World Bank , pp 01-44.
Roland Hodler (2007) , Institutions, Trade and the Political Economy of Financial Development , NCCR Trade Regulation swiss national centre of competence in research , Working Paper No 2007/27 , pp 01-32.
Leopoldo Fergusson (2006) , Institutions for Financial Development: What Are They and Where Do They Come From? , Journal of Economic Surveys, Vol. 20, No. 1, pp. 27-70.
Kpodar (2006) , Développement Financier , Instabilité Financière Et Croissance Economique : Implications Pour La Rédaction De La Pauvreté , Thèse De Doctorat , Université D’auvergne Clermont Ι , Pp 25 .
Thorsten Beck, Asli Demirgüç-Kunt, Ross Levine (2003) , Law And Finance: Why Does Legal Origin Matter? , Journal Of Comparative Economics , Vol 31 , Pp 657 .
Thorsten Beck , Ross Levine (2003) , Legal Institutions And Financial Development , Nber Working Paper Series , No. 10126 , December , Pp 261 .
Thorsten Beck, Asli Demirgüç-Kunt, Ross Levine (2003) , op cite , Pp 653–675 .
Daron Acemoglu, Simon Johnson, And James A. Robinson (2001), The Colonial Origins Of Comparative Development: An Empirical Investigation , The American Economic Review , Vol. 91 , No. 5 , Pp. 1369-1401 .
Ross Levine (2005) , Law, Endowments And Property Rights , Journal Of Economic Perspectives , Vol 19 , N° 3 , pp75 .
Thorsten Beck, Asli Demirgüç-Kunt , Ross Levine (2003) , Law, Endowments, And Finance , Journal Of Financial Economics , Vol 70 , Pp 137–181 .
Chinazaekpere Nwani1, Eugene Iheanacho and Chijioke Okogbue(2016), Oil price and the development of financial intermediation in developing oil-exporting countries: Evidence from Nigeria, Cogent Economics & Finance.
Badi H. Baltagi , Panicos O. Demetriades , Siong Hook Law (2009) , Financial Development And Openness: Evidence From Panel Data , Journal Of Development Economics , Vol 89 , Pp 285–296.
Siong Hook Law, W. N. W. Azman-Saini (2012), Institutional quality, governance, and financial development, Economics of Governance, Vol. 13, Issue 3, pp 217–236.
Ioannis Filippidis, Constantinos Katrakilidis (2015), Finance, institutions and human development: Evidence from developing countries, Economic Research-Ekonomska Istraživanja, Vol. 28, No. 1, 1018–1033.
Thai-Ha Le, Jungsuk Kim, and Minsoo Lee (2015), Institutional Quality, Trade Openness, and Financial Development in Asia: An Empirical Investigation, ADB Economics Working Paper Series, N°. 452.
Thomas Gries, Daniel Meierrieks (2010), Institutional Quality and Financial Development in Sub-Saharan Africa, pp 01-26.
Johnson P. Asiama, Hakeem Mobolaji (2011), Trade and Financial Openness, Institutional Quality, and Financial Development in Sub-Sahara Africa (SSA), ICITI 2011, pp 01-31.
مصيطفى عبد اللطيف، "دور البنوك وفعاليتها في تمويل النشاط الاقتصادي- حالة الجزائر، مجلة الباحث، العدد 04، 2006، ص80.
أمحمد عبد الكريم بوغزالة، " التطور المالي في بلدان المغرب العربي في ظل الانفتاح والتحرير المالي خلال الفترة 1990-2013"، مجلة أداء المؤسسات الجزائرية، العدد 08، 2015، ص132.
مجموعة البنك الدولي، وقائع من تقرير ممارسة أنشطة الأعمال :منطقة الشرق الأوسط وشمال أفريقيا، 2015، ص01 .
Joan Robinson (1952), The Generalization of the General Theory, The Rate of Interest and Other Essays, London, Macmillan, Page 69-142.
Raghuram G. Rajan , Luigi Zingales (2003); The Great Reversals: The Politics Of Financial Development In The Twentieth Century ; Journal Of Financial Economics ; N° 69 ; 2003.
Published
2018-06-03
How to Cite
Bendahmane, A., & Beddou, A. (2018). The impact of abundance of natural resources and institutional quality on banking sector development in Algeria . Journal of Excellence for Economics and Management Research, 2(01), 50-97. https://doi.org/10.34118/jeemr.v2i01.345
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Original Article
