Financial Market Regulations in a Globalized World: Some Remarks for the MENA Region

Financial Market Regulations in a Globalized World: Some Remarks for the MENA Region

Kemal Cebeci (Marmara University, Turkey) and Özkan Zülfüoğlu (Marmara University, Turkey)
Copyright: © 2016 |Pages: 19
DOI: 10.4018/978-1-4666-9601-3.ch008
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During the 2008 and 2011 crisis, the main crisis of globalization brought the financial markets to the attention of most critics for globalization. The high mobility of capital, non-regulated operations in the markets, the failures of big investment firms (e.g Lehman Brothers) etc. sparked opposition to financial markets and started discussions about regulation of these markets for achieving a healthier free market economy. In this chapter, we analyze the globalization process, particularly in the financial markets, as part of globalization overall. We try to determine the current structure and quality of financial markets in the Middle East and North Africa (MENA). We aim to discover what the main problems are and which reforms should be implemented to achieve a strong financial system in the MENA region. In addition, we analyze recent developments and regulations in the financial markets of the MENA countries. In last section, we propose some suggestions for improving and reaching a global quality level in the financial system of the MENA countries.
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Comments On Globalization

Globalization mainly depends on the mobility of production factors. There is much debate regarding the evolution, aspects and effects of the major dynamics of globalization. When the countries that benefit from globalization are examined, these countries seem to be developed ones. Developing countries, also expressed as emerging markets, have suffered from financial crises due to short-run capital movements arising as a result of global financial developments. Moreover, the economic dimensions of the current globalization debate seem to be associated with neo-liberal economic policies, which gradually enhance its impact (Şenses, 2004). Neo-liberal theory demands a global market economy, in which capital moves freely without obstacles (Scholte, 2005). In this regard, the current globalization dynamics seem to be formed according to this theory.

Although there is no consensus on the definition of globalization, the term is generally used as a proxy for the integration of technology, human, ideas and services capital (Adams, 2008). Globalization reveals its results in a variety of dimensions: political, economic, social and many others. The concept originally emerged in the form of the addition of domestic economies to world markets. In this context, dependence and interaction arise as a result of economic and other impacts and results (Hirst & Thompson, 1992). As a result of the globalization process, decision processes and economic indicators of domestic economies lose their ability to move independently from global market dynamics.

Globalization introduces its economic impacts and brings new dynamics in many respects such as financial markets, new investment tools arising in the financial markets, hot money movements, global tax problems, increases in international transactions and increases in the sovereignty of multinational corporations in the world economy.

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