Financial development in Maghreb Countries in the light of openness and financial liberalization during the period 1990- 2013
The objective of this paper is to examine the effects of openness and financial liberalization on financial development, with the focus on banking sector. After using and analyzing data collected from countries of the research sample that contains Algeria, Morocco and Tunisia, which have been carefully selected to show the countries variation in terms of financial development, in order to give analytical results that explain reality after financial reforms adopted during the period 1990-2013. We find that a higher level of financial openness increases financial development only if a threshold level of institutional development has been attained. It was also found that Morocco was on the top of the sample in terms of financial development, followed by Tunisia and Algeria at the end.