The role of political institutions in effectiveness the financial sector; Stochastic frontier Analysis (SFA)
Currently, institutional analysis has found its place in the research literature of economics. The importance of the precedence of political institutions in the formation and efficiency of other institutions and, consequently, economic activities have been reflected in the works of new institutionalists in various ways. In many cases, the propulsive effect of political institutions on various aspects of economic activity or institutional interactions has been interpreted as paradoxical. One area that has been affected by these dual and contradictory effects is the financial area, especially when it comes to the monetary area. In this paper, using the Stochastic frontier Analysis (SFA) approach and focusing on selected countries of the Middle East and North Africa (MENA), it is shown that in which theoretical framework, and secondly, with what kind of empirical interpretation, these contradictory effects can be explained. The results show that whenever political institutions directly interfere in the financial and monetary sectors, they lead to the failure of the government and thus have a negative effect on efficiency, and vice versa if they perform as a external facilitator. financial and monetary sector can play a positive role in efficiency.
- حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران میشود.
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