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Papers by Ichraf OUECHTATI

Research paper thumbnail of Can Institutions Explain the Causality Relationship Between Trilemma Instability and Macroeconomic Volatility?

We examine the causality relationship between macroeconomic regime instability and GDP growth vol... more We examine the causality relationship between macroeconomic regime instability and GDP growth volatility, taking into account the institutional environment. Using data from 44 emerging and developing countries for the period 1996-2010, we study the mutual effects between monetary, exchange rate and financial instabilities and macroeconomic volatility. We apply the dynamic panel Granger causality test (The Wald test) based on GMM estimations to explore the existence and the directions of causality between real and financial sectors. We find that Causality going from macroeconomic regime instability to real fluctuations exists; the effect of the trilemma policy mix instability on macroeconomic volatility is larger than the opposite effect; reserve accumulation is an important stabilizer of real and financial spheres and there is a bidirectional causality only between monetary instability and macroeconomic fluctuations. Taking into account the institutional environment, we include a ve...

Research paper thumbnail of RESEARCH ARTICLE Economic Vulnerability and Economic Growth: What is the Role of Institutions for MENA Countries?

Manuscript History: This paper analyzes the role of institutions in mitigating the negative effec... more Manuscript History: This paper analyzes the role of institutions in mitigating the negative effects of shocks of terms of trade on economic growth. Utilizing a dynamic panel data approach for 15 MENA countries over the period 1996-2010, the results demonstrate that good institutional quality helps to mitigate the negative effects of economic vulnerability on economic growth. We also conclude that interaction terms between trade openness and institutions can reducing the negative effects of trade shocks linked to terms of trade fluctuations and trade openness can stimulate economic growth only when the threshold institutional level is reached.

Research paper thumbnail of Macroeconomic fluctuations, financial instability and institutions: the case of developing countries

This study employs dynamic panel generalized method of moment (GMM) technique to empirically exam... more This study employs dynamic panel generalized method of moment (GMM) technique to empirically examine the role of institutions in explaining the causal relationship between macroeconomic fluctuations and financial instability for a sample of 44 emerging and developing countries over the 1996- 2010 period. In this work, Granger causality tests will be performed with panel data. Similar to Chamberlain (1984) and Holtz- Eakin and al. (1988), we test the non causality hypothesis by examining whether the coefficients of the lagged or the lagged difference of independent variables are zero, that is, (Wald test). We use, in this analysis, the method of GMM system proposed by Arellano and Bover (1995) and Blundell and Bond (1998). Their estimator augments Arellano and Bond (1991) by establishing an additional assumption, that first differences of instrumenting variables are uncorrelated with the fixed effects. It builds a system of two equations- the original equation as well as the transfor...

Research paper thumbnail of Macroeconomic Volatility and Financial Architecture Instability: Institutional Considerations of the Causality

This paper investigates the role of institutions in explaining the causality relationship between... more This paper investigates the role of institutions in explaining the causality relationship between macroeconomic volatility and financial architecture instability. We document that shocks and higher macroeconomic volatility weaken financial structure and determine the endogeneity of institutions. Examining the way by which the authorities act to build the DFAs under excessive volatility, we note that reactive policymaking models influence the timing and the order of innovations of the DFA institutions and have the potential to produce economically dysfunctional configurations in some time. We also indicate that human resources and other constraints linked to the capacity of public and private agents contribute to financial fragility in developing countries.Keywords: Financial architecture, Institutions, Macroeconomic volatility.

Research paper thumbnail of The Contribution of Financial Inclusion in Reducing Poverty and Income Inequality in Developing Countries

Asian Economic and Financial Review, 2020

This study employed three different dynamic panel data estimators to empirically examine the effe... more This study employed three different dynamic panel data estimators to empirically examine the effect of financial inclusion on poverty and income inequality for a sample of 53 developing countries between 2004 and 2017. The findings revealed a negative relationship between financial inclusion and poverty; within which availability of credit and access to deposit accounts at commercial banks tend to significantly alleviate poverty. These results support the idea that financial access, as well as financial development, contribute to reducing poverty by increasing the money supply or credit and improving the welfare of the poor. Furthermore, it was concluded that a high bank penetration rate and credit facilitate access to financial services for the poor and reduce income inequality. This result was corroborated by the bias-corrected fixed effects estimator at significance levels of 5% and 1%, respectively. Those proxy variables for financial inclusion that exert no significant effects could be explained by weak financial institutional structures, plus the need to incorporate elements of financial inclusion into a stronger framework, which would exert an effective impact on poverty and income inequality. Contribution/Originality: This paper contributes to the existing literature by employing three dynamic panel data estimators-bias-corrected fixed effects, difference GMM, and system GMM-to assess the effects of financial inclusion on income inequality and poverty and deal with endogeneity issues. 1. INTRODUCTION Since the late 1990s, financial inclusion has attracted growing attention owing to evidence of its significant effects on improving economic development, reducing poverty (Boukhatem, 2016) and financial stability (Han & Melecky, 2013). Financial inclusion is defined as "the availability of a supply of reasonable quality financial services at reasonable costs" (Claessens, 2006), meaning that access to financial services involves not only benefits (e.g., savings and interest, or credit) but also costs (e.g., bank fees and commissions). However, it is also defined as "the process for ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups" (Rangarajan, 2008) from which it can be inferred that financial inclusion primarily targets vulnerable people in society, such as the poor, with the aim of reducing inequalities.

Research paper thumbnail of Comovements and Structural Factors of Macroeconomic Volatility in Developing and Transition Economies: A Dynamic Panel Data Approach

Asian Economic and Financial Review, 2013

This study examines the comovements of some economic variables and explores the structural factor... more This study examines the comovements of some economic variables and explores the structural factors of macroeconomic volatility in developing and transition economies, using dynamic panel technique. According to an analysis of variance and covariance, we conclude that macroeconomic volatilities are higher in these countries compared to developed economies and consumption volatilities exceed those of production in developing and transition economies.

Research paper thumbnail of Impact Factor: 5.2 IJAR

Diaper dermatitis is most common in infants and children. A number of factors have been found to ... more Diaper dermatitis is most common in infants and children. A number of factors have been found to worsen diaper rash, including early introduction of cereals in the baby's diet and putting the baby to sleep on his or her back. The purpose of the study was to assess the pre-test and post-test knowledge regarding diaper dermatitis among mothers of infants and to evaluate the effectiveness of structured teaching programme regarding diaper dermatitis among the mothers of infants and to assess the association between pre-test and post-test knowledge regarding diaper dermatitis among the mothers of infant of with selected demographic variables. The study methodology was Evaluative research approach and pre experimental one group pre-test post-test design was used. Non randomized purposive sampling technique was used to select the sample of the study. The total study sample consisted of 30 mothers of infants. The result of the study concluded that the comparison of mean, standard deviation of pre-test and post-test knowledge and paired't' test value regarding diaper dermatitis. The pre-test knowledge score is 11.83 and post test score is 23.87 and the obtained t value 16.70 statistically significant at 0.00l***. This indicates that the mean difference of 12.04 it is hypothesized that as there is significant in effectiveness in structured teaching programme among mothers of infants.

Research paper thumbnail of Institutions and Foreign Direct Investment: A Panel Var Approach

International Journal of Economic Sciences, 2020

Research paper thumbnail of Can Institutions Explain the Causality Relationship Between Trilemma Instability and Macroeconomic Volatility?

We examine the causality relationship between macroeconomic regime instability and GDP growth vol... more We examine the causality relationship between macroeconomic regime instability and GDP growth volatility, taking into account the institutional environment. Using data from 44 emerging and developing countries for the period 1996-2010, we study the mutual effects between monetary, exchange rate and financial instabilities and macroeconomic volatility. We apply the dynamic panel Granger causality test (The Wald test) based on GMM estimations to explore the existence and the directions of causality between real and financial sectors. We find that Causality going from macroeconomic regime instability to real fluctuations exists; the effect of the trilemma policy mix instability on macroeconomic volatility is larger than the opposite effect; reserve accumulation is an important stabilizer of real and financial spheres and there is a bidirectional causality only between monetary instability and macroeconomic fluctuations. Taking into account the institutional environment, we include a ve...

Research paper thumbnail of RESEARCH ARTICLE Economic Vulnerability and Economic Growth: What is the Role of Institutions for MENA Countries?

Manuscript History: This paper analyzes the role of institutions in mitigating the negative effec... more Manuscript History: This paper analyzes the role of institutions in mitigating the negative effects of shocks of terms of trade on economic growth. Utilizing a dynamic panel data approach for 15 MENA countries over the period 1996-2010, the results demonstrate that good institutional quality helps to mitigate the negative effects of economic vulnerability on economic growth. We also conclude that interaction terms between trade openness and institutions can reducing the negative effects of trade shocks linked to terms of trade fluctuations and trade openness can stimulate economic growth only when the threshold institutional level is reached.

Research paper thumbnail of Macroeconomic fluctuations, financial instability and institutions: the case of developing countries

This study employs dynamic panel generalized method of moment (GMM) technique to empirically exam... more This study employs dynamic panel generalized method of moment (GMM) technique to empirically examine the role of institutions in explaining the causal relationship between macroeconomic fluctuations and financial instability for a sample of 44 emerging and developing countries over the 1996- 2010 period. In this work, Granger causality tests will be performed with panel data. Similar to Chamberlain (1984) and Holtz- Eakin and al. (1988), we test the non causality hypothesis by examining whether the coefficients of the lagged or the lagged difference of independent variables are zero, that is, (Wald test). We use, in this analysis, the method of GMM system proposed by Arellano and Bover (1995) and Blundell and Bond (1998). Their estimator augments Arellano and Bond (1991) by establishing an additional assumption, that first differences of instrumenting variables are uncorrelated with the fixed effects. It builds a system of two equations- the original equation as well as the transfor...

Research paper thumbnail of Macroeconomic Volatility and Financial Architecture Instability: Institutional Considerations of the Causality

This paper investigates the role of institutions in explaining the causality relationship between... more This paper investigates the role of institutions in explaining the causality relationship between macroeconomic volatility and financial architecture instability. We document that shocks and higher macroeconomic volatility weaken financial structure and determine the endogeneity of institutions. Examining the way by which the authorities act to build the DFAs under excessive volatility, we note that reactive policymaking models influence the timing and the order of innovations of the DFA institutions and have the potential to produce economically dysfunctional configurations in some time. We also indicate that human resources and other constraints linked to the capacity of public and private agents contribute to financial fragility in developing countries.Keywords: Financial architecture, Institutions, Macroeconomic volatility.

Research paper thumbnail of The Contribution of Financial Inclusion in Reducing Poverty and Income Inequality in Developing Countries

Asian Economic and Financial Review, 2020

This study employed three different dynamic panel data estimators to empirically examine the effe... more This study employed three different dynamic panel data estimators to empirically examine the effect of financial inclusion on poverty and income inequality for a sample of 53 developing countries between 2004 and 2017. The findings revealed a negative relationship between financial inclusion and poverty; within which availability of credit and access to deposit accounts at commercial banks tend to significantly alleviate poverty. These results support the idea that financial access, as well as financial development, contribute to reducing poverty by increasing the money supply or credit and improving the welfare of the poor. Furthermore, it was concluded that a high bank penetration rate and credit facilitate access to financial services for the poor and reduce income inequality. This result was corroborated by the bias-corrected fixed effects estimator at significance levels of 5% and 1%, respectively. Those proxy variables for financial inclusion that exert no significant effects could be explained by weak financial institutional structures, plus the need to incorporate elements of financial inclusion into a stronger framework, which would exert an effective impact on poverty and income inequality. Contribution/Originality: This paper contributes to the existing literature by employing three dynamic panel data estimators-bias-corrected fixed effects, difference GMM, and system GMM-to assess the effects of financial inclusion on income inequality and poverty and deal with endogeneity issues. 1. INTRODUCTION Since the late 1990s, financial inclusion has attracted growing attention owing to evidence of its significant effects on improving economic development, reducing poverty (Boukhatem, 2016) and financial stability (Han & Melecky, 2013). Financial inclusion is defined as "the availability of a supply of reasonable quality financial services at reasonable costs" (Claessens, 2006), meaning that access to financial services involves not only benefits (e.g., savings and interest, or credit) but also costs (e.g., bank fees and commissions). However, it is also defined as "the process for ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups" (Rangarajan, 2008) from which it can be inferred that financial inclusion primarily targets vulnerable people in society, such as the poor, with the aim of reducing inequalities.

Research paper thumbnail of Comovements and Structural Factors of Macroeconomic Volatility in Developing and Transition Economies: A Dynamic Panel Data Approach

Asian Economic and Financial Review, 2013

This study examines the comovements of some economic variables and explores the structural factor... more This study examines the comovements of some economic variables and explores the structural factors of macroeconomic volatility in developing and transition economies, using dynamic panel technique. According to an analysis of variance and covariance, we conclude that macroeconomic volatilities are higher in these countries compared to developed economies and consumption volatilities exceed those of production in developing and transition economies.

Research paper thumbnail of Impact Factor: 5.2 IJAR

Diaper dermatitis is most common in infants and children. A number of factors have been found to ... more Diaper dermatitis is most common in infants and children. A number of factors have been found to worsen diaper rash, including early introduction of cereals in the baby's diet and putting the baby to sleep on his or her back. The purpose of the study was to assess the pre-test and post-test knowledge regarding diaper dermatitis among mothers of infants and to evaluate the effectiveness of structured teaching programme regarding diaper dermatitis among the mothers of infants and to assess the association between pre-test and post-test knowledge regarding diaper dermatitis among the mothers of infant of with selected demographic variables. The study methodology was Evaluative research approach and pre experimental one group pre-test post-test design was used. Non randomized purposive sampling technique was used to select the sample of the study. The total study sample consisted of 30 mothers of infants. The result of the study concluded that the comparison of mean, standard deviation of pre-test and post-test knowledge and paired't' test value regarding diaper dermatitis. The pre-test knowledge score is 11.83 and post test score is 23.87 and the obtained t value 16.70 statistically significant at 0.00l***. This indicates that the mean difference of 12.04 it is hypothesized that as there is significant in effectiveness in structured teaching programme among mothers of infants.

Research paper thumbnail of Institutions and Foreign Direct Investment: A Panel Var Approach

International Journal of Economic Sciences, 2020