GROWTH PERFORMANCE OF MENA AND AFRICAN COUNTRIES: IMPACTS OF THE VARIATIONS IN LAND AND NATURAL RESOURCE OWNERSHIP

Abstract

This paper examines the primary determinants of the contemporary economic growth performance in MENA and African countries using a panel data estimation and random effects model during the period 1996-2014 for 24 countries. It is hypothesized that the variation in natural resources rents, initial human capital stock, and initial inequality in land ownership have significant impacts on contemporary economic growth rates in different countries. Furthermore, various political economy factors are controlled for in order to measure the effect of institutional quality. The estimation results show that the natural resources rents, initial inequality in land ownership, initial income, and government effectiveness influence GDP per capita growth rates with a statistical significance.