The Different Contribution of Productive Factors to Economic Growth in mena Countries

Abstract

The aim of this study is to analyse the extent to which different productive factors, and the relationships that exist between them, affect the economic growth of productivity in ten Middle Eastern and North African (mena) countries during the period 1990-2010. A translog production function is estimated by using panel data and the contribution of the factors to growth is calculated. The results show a positive effect of the physical and human capital on productivity and high complementarity relationships between them, both factors being essential in determining economic growth. However, the magnitude of their contribution varies substantially between the ten countries considered. Thus, the capitalisation of the economies and the improvement of the human capital seem to be key policy elements of economic growth in these countries. Nevertheless, a considerable part of the economic growth cannot be explained by these factors, particularly in Syria, Jordan, Saudi Arabia and Tunisia.