Banking Crisis, Financial Liberalization, MENA, Panel Data
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Since the early 1980s, most developed countries are based on the financial liberalization process to increase their economic growth. However, this experience is often accompanied by a banking crisis that undermined the objectives of financial liberalization. This paper provides an econometric analysis of external financial liberalization effect on the failure of the banking system of five countries in the MENA region during the period 1980 - 2013. Using a panel data approach, this article shows that, under certain conditions, more external liberalization is low, more a banking crisis can occur.