The long-run relationships between transport energy consumption, transport infrastructure, and economic growth in MENA countries

Abstract

This paper investigates the impact of transport energy consumption and transport infrastructure on economic growth by utilizing panel data on MENA countries (the Middle East and North Africa region) for the period of 2000–2016. The MENA region panel is divided into three sub-groups of countries: GCC panel (containing the Gulf Cooperation Council countries), N-GCC panel (containing countries that are not members of the Gulf Cooperation Council), and North African countries (called MATE—Morocco, Algeria, Tunisia and Egypt). Using the Generalized Method of Moments (GMM), we find that transport energy consumption significantly adds to economic growth in MENA, N-GCC and MATE regions. Transport infrastructure positively contributes to economic growth in all regions. The Dumitrescu-Hurlin panel causality analysis shows the feedback effect of transport energy consumption and transport infrastructure with economic growth. The empirical results add a new dimension to the importance of investing in modern infrastructure that facilitates the use of more energy-efficient modes and alternative technologies that positively affect the economy with minimizing negative externalities.