The impact of financial liberalization behavior on the performance of financial policies of developing countries; Empirical Study using the panel models of a sample of 19 countries during the period (1995 - 2018)

Abstract

The study aimed to measure the impact of financial liberalization behavior on the performance of financial policies of a sample of nineteen countries from the developing economics using the panel models for the period (1995 - 2018), where the study has adopted on some indicators of : internal and external financial liberalization and the index of financial market liberalization, in addition to the macroeconomic stability index as explanatory variables. The study found that there is a positive and significant effect of bank credit to the private sector and the rate of inflation and a positive and not significant effect for the market capitalization of the companies listed on the stock market and foreign direct investment on public expenditures. In addition to the positive and significant impact of bank credit to the private sector and the market capitalization of the companies listed on the stock market and a positive and not significant effect for the rate of inflation and foreign direct investment on the general revenues of the countries under study. Keywords: Financial Liberalization, Financial policy, Developing countries, Panel Data