This article provides an empirical assessment of the relationship between financial development and institutional quality, taking into account financial instability. This instability remains one of the first symptoms of the disorder of the financial system which implies the need to highlight warning indicators to assess the soundness of the financial system and identify policy measures to reduce the risk of financial instability. The assumption is that the instability of financial development increases with financial crises. Indeed, using a panel of 13 emerging countries and a period of 15 years from 1996 to 2011, we tried to detect the impact of various external macroeconomic factors and financial instability on financial understanding by the index financial stress (ISF). The construction of this index leads to the conclusion that besides the traditional elements of institutional quality of a country plays an important role in the intensity of stress. In other words, such an indicator is crucial in the early detection of financial crises. Moreover, econometric and quantitative analysis revealed that there is a significant negative correlation between the index of financial stress on the one hand and economic growth and institutional quality by other, while is positively correlated with banking regulations. Moreover, the analysis strongly rejected the assumption of homogeneity of data on the index of financial stress in our panel, and the suggestion of a heterogeneous random individual effect model.

Dynamic Links of transmission return and volatility in the capital markets are of crucial interest to the financial community with the growing trend of financial globalization in the world. This article focuses on the links of return and volatility's transmission between oil markets and stock to a panel of seven countries among the MENA region and Europe over the period 2003-2013. We use a recent approach (VAR-GARCH-DCC) which allows transmissions of return and volatility. Overall, our results suggest the existence of significant returns and reversal volatilities between change of oil price and financial markets. Direct transmission of conditional volatility across markets is, however, more evident from oil to the stock markets. The empirical results of optimal weights validated by a positive coefficient of constant conditional correlation (CCC), indicates that investors can benefit from the added oil prices in a well-diversified equity portfolio. On the whole, to the extent that the transmission of the shock is concerned, changes in oil prices tend to affect significantly but negatively several stock markets in our sample, while the impact of these markets on oil prices is almost absent. In addition, the effect of oil shocks is more pronounced during the crisis period than normal, suggesting that the recent global financial crisis has increased the transmission of shocks of oil on stock markets.

The purpose of this article is, by using a Vector Error Correction Model (VECM) applied to the case of Tunisia, to highlight the possible relationship of governance with economic growth. Indeed, considered as the way by which power is exercised in the management of economic and social resources of a country, several empirical studies have attempted to identify the relationship between the governance and the economic growth of a country. The majority of works were in the form of cross-section studies, without considering the time dimension. Similarly, the works usually based in the construction of the quality of the governance of a country on some components without taking into account all the qualities mentioned. Indeed, using a database of various official organizations, we have tried to build an aggregate indicator, supposedly apprehend the quality of Tunisian institutions. Certainly, it turned out from the various tests and investigations carried that a causal relationship exists between governance and economic growth. In other words, like the governance affects growth, the latter in turn has an effect on the quality of the institutions of the country.