An-Najah University Journal for Research - B (Humanities)


Among the profound evolutions in development economics in recent decades is the renewed interest in, and growing contributions on, the role of financial sector development in economic development. While it is clear that a positive effect exists between financial sector development and economic growth, the question of what determines financial sector development and how to develop financial markets remains imperfectly understood. This Study aims to build a comprehensive picture of the factors affecting financial sector development in Arab countries in southern Mediterranean during the period (1996-2011) using Panel data .The paper focuses on the role of institutional development, financial openness and economic growth.