Financial Integration and Economic Growth: Empirical Insights from the MENA Countries

This article examines the effects that financial integration induces on the economic growth of MENA countries in the presence of a set of control variables. To analyse the factors that are likely to significantly affect the economic growth of MENA countries, the bivariate and multivariate methods are used over a period spanning from 1995 to 2021. This study reveals that the financial integration induces a positive and significant effect on the economic growth of this sample of countries; trade openness and investment significantly contribute to economic growth, while inflation and financial instability show a significant and negative effect on the economic growth. These findings advocate for the implementation of suitable financial and economic regulations in the MENA countries and indicate that these factors should be prioritised in the formulation of economic strategies. This study is an attempt to contribute to enriching the empirical literature that examines the central role of financial integration in economic growth in developing countries.