Economic Growth In MENA Countries Research Articles

Public Debt and Economic Growth in MENA Countries. An Analysis by Panel Co-Integration Techniques

This study analyzes the dynamic relationship between public debt and economic growth in the economies of the MENA region during 1996 -2020. To do this, two econometric tools were applied. The first method presents panel cointegration techniques and Granger causality tests to verify the existence of a long-term relationship and examine the direction of causality between the different variables chosen. The FMOLS and DOLS panel techniques were used to estimate the long-term parameters. Thus, we show that the long-term impact of public debt on economic growth is both positive and significant. The second method describes the link using a linear growth model and another dynamic model. The latter two were estimated using the generalized moments method with dynamic panel data. The results show a close relationship between the exogenous variable debt and endogenous variable economic growth, and that debt positively affects growth up to a certain threshold. Beyond this threshold, the effect becomes negative and significant. Nevertheless, we have concluded that from a certain threshold, debt can exceed the repayment capacities and, therefore, disadvantage growth, which will in turn discourage domestic investments and savings.

External Debt and Economic Growth in MENA Countries: Does Governance Matter?

External Debt and Economic Growth in MENA Countries: Does Governance Matter?

The Causality Between Corruption and Economic Growth in MENA Countries: A Dynamic Panel-Data Analysis

The Causality Between Corruption and Economic Growth in MENA Countries: A Dynamic Panel-Data Analysis

Rents, financial development, and economic growth in MENA countries, 2000-2020

Rents, financial development, and economic growth in MENA countries, 2000-2020

Exploring the Dynamic Links between FDI and Economic Growth in MENA Countries

This article aims to explore the causal relationship between economic growth and foreign direct investment (FDI). It draws upon various theoretical and empirical studies that investigate the impact of FDI on economic growth. Additionally, we assess the dynamic relationship between FDI and economic growth in a sample of 22 countries in the MENA region. The estimation of this dynamic relationship for the years 1985-2020 across these countries is conducted using the Generalized Method of Moments (GMM). Furthermore, the Dumitrescu and Hurlin (2012) test is employed to scrutinize the presence or absence of a causal direction in panel data between FDI and economic growth, approximated by gross domestic product (GDP). Our findings suggest the existence of a unidirectional relationship from FDI to economic growth.

Financial inclusion, institutional quality, and economic growth in MENA countries: some evidence from panel cointegration

ABSTRACT The purpose of this paper is to examine financial inclusion indicators with some institutional quality indicators to better understand their combined effect on economic growth in the context of MENA region using panel cointegration tests. The study covers a sample of 16 countries during the 1997–2018 period. The main findings show a positive connection between economic growth and institutional quality in the long run. Moreover, institutional quality negatively affects financial inclusion while no effect of financial inclusion on economic growth was found. These results show that the most of MENA countries have not reached the level of institutional quality, beyond which the financial inclusion can act as a growth factor.

The threshold effects of public debt on economic growth in MENA countries: Do energy endowments matter?

We investigate the effects of public debt on economic growth and examine its viability as a policy tool to spur economic growth using a sample of 14 Middle Eastern and North African countries over the period 1980–2021. We reveal that the relationship between public debt and economic growth varies between oil and non-oil countries. Specifically, we find that the debt threshold hovers around 46%–69% for oil countries and 74%–81% for non-oil countries depending on the specification employed. Furthermore, our findings highlight that the implications of public debt on economic growth are more favorable for non-oil countries, regardless of the actual level of debt in comparison to the threshold. Notably, when a country's debt lies beneath the threshold, the positive impact of borrowing on economic growth is more pronounced for non-oil countries. Similarly, once the level of debt surpasses the threshold, the adverse effects of indebtedness on economic growth are less severe for this particular group of countries. Our findings are critically important for policymakers and demonstrate the importance of a country’ energy endowment in moderating the relationship between debt and economic growth.

The Linear and Non-Linear Effects of External Debt on Economic Growth in MENA Countries: An Empirical Investigation

The Linear and Non-Linear Effects of External Debt on Economic Growth in MENA Countries: An Empirical Investigation

ICT AND ECONOMIC GROWTH, ECONOMETRIC STUDY OF MENA SAMPLE OVER 2000-2019

This research aims to study the impact of information and communication technology on economic growth in MENA countries during the period (2000-2019), We measured information and communication technology by bandwidth and internet users in percentage of population. The results showed that ICT has a positive effect on economic growth, but this effect is not significant. The results also proved that human capital has a strong positive impact on economic growth. This indicates the importance of the human resource in advancing economic growth in the MENA countries

Investigating the Long-run Influences of Human Capital on Innovation and Economic Growth in MENA Countries

Investigating the Long-run Influences of Human Capital on Innovation and Economic Growth in MENA Countries

Impact of Agricultural Sector on Economic Growth in MENA Countries: Evidence from Panel FMOLS and DOLS Estimators

The main purpose of this research paper was to empirically analyze the impact of the agricultural sector on economic growth in the Middle East and North Africa region during the period (2000-2019) based on panel co-integration approach and Fully modified OLS and Dynamic ordinary least squares estimators. The results showed a long run relationship between the variables used. As for the results of estimating the study model in the long run using the FMOLS and DOLS estimators, it was found that the agriculture value added had a significant positive impact on economic growth, while the food production index, employment in the agriculture sector and arable land had a negative impact on economic growth.

The association between health expenditure, institutions, and economic growth in MENA countries.

Background: Expenditure on health is vital in the development of a country. Furthermore, the current COVID-19 pandemic emphasises the importance of health investments in maintaining a healthier economy worldwide. A substantial amount of empirical research on the relationship between health expenditure and economic growth yields conflicting results. The study intends to investigate the relationship between health spending and economic growth and institutions’ role in causing health spending to promote growth. Methods: The study uses longitudinal data to examine the relationship between health spending and economic growth in seven MENA countries from 2000 to 2017. The study uses the Phillips Perron (PP) Fisher chi-square stationarity test, indicating that the data series is not stationary. Following this, we used the Pedroni test for cointegration, and the results show long-run relationships between the variables. Next, Granger causality determines the direction of causality. Finally, panel data methods of panel ordinary least squares (Panel OLS), fully modified OLS (FMOLS), and dynamic OLS (DLOS) supplement the findings. Results: The Pedroni cointegration test (P value<0.0001) indicates that the variables have a long-run cointegrating relationship. On the other hand, the Granger causality test finds no causal relationships between health spending and economic growth. Furthermore, the panel data models show that expenditure on health does not directly contribute to higher economic growth in MENA countries. Conclusion: The findings of this study indicate that health spending does not lead to increased economic growth; this could be due to poor institutional quality. However, for health spending to positively impact economic growth, these investments in health care must be supplemented by other factors, particularly institutions.

Does geopolitical risk and financial development matter for economic growth in MENA countries?

Does geopolitical risk and financial development matter for economic growth in MENA countries?

Remittances and Economic Growth in MENA Countries: The Role of Financial Development

This paper investigates the conditional effects of remittances on economic growth in 7 MENA countries, namely, Tunisia, Morocco, Algeria, Egypt, Jordan, Lebanon, and Turkey from 2000 to 2018. Using the system generalized method of moments (GMM) in a panel data analysis, we found strong evidence of a positive relationship between remittances and economic growth. We also found that financial development acted as a complement in the remittances-growth relationship. A clearer understanding of the channels through which remittance flows will enhance economic growth in the MENA region may assist policymakers to formulate appropriate policies. In particular, a policy environment that promotes financial system development would serve to attract more remittances.

The Impacts of Institutions and Recourses Management Improvement on Economic Growth in MENA Countries (Spatial Models in Panel Data)

The Impacts of Institutions and Recourses Management Improvement on Economic Growth in MENA Countries (Spatial Models in Panel Data)

The Role of Institutions in the Renewable Energy-Growth Nexus in the MENA Region: a Panel Cointegration Approach

Institutional quality plays an undeniable role in every goal of accelerating economic growth. While the MENA region offers many natural assets that can make investments in renewable energy profitable, this region suffers from several institutional quality issues. In this line of thinking, this paper examines the relationship between renewable energy and economic growth in MENA countries taking into account institutional measures. To get a deeper insight into the relationship between this triangle of annual variables spreading from 1986 to 2015, our study considered a broader set of institutional variables, namely, corruption, bureaucracy quality, democracy accountability, law and order, and ethnic tensions. Using panel cointegration tests, we found that renewable energy, economic growth, and any institutional measures, of all considered in this study, are cointegrated. Furthermore, we found a strong causality running from renewable energy and any institutional measure, except law and order, to growth. A reverse path is also observed since there is also a strong causality running from growth to renewable energy when the causal regression includes any institutional measure. Our findings corroborate the fact that establishing an attractive institutional framework in MENA countries could be of ultimate importance in the profitability of renewable energy investments and in accelerating economic growth.

Water Scarcity Effect on Economic Growth in MENA Region during 1975-2017

The paper aimed at identifying the water scarcity effect on economic growth in MENA countries using a panel data analysis during 1975-2017. The findings showed that there is a negative effect of excess in water consumption on economic growth, which means that augmentation of water consumption rates decelerates economic growth for most MENA countries.

The Impact Of Agricultural Sector On Economic Growth In MENA Countries:, A Panel Econometric Approach

The Impact Of Agricultural Sector On Economic Growth In MENA Countries:, A Panel Econometric Approach

Liberalization, crisis and growth in MENA region: Do institutions matter?

The main purpose of this study is to investigate the interaction between financial liberalization, banking crisis and economic growth by taking into consideration the role of institutions. Our sample covers 15 Middle East and North African observed during the period 2000–2013. Using a dynamic panel data framework, our findings reveal that financial liberalization contributed to improve economic growth in MENA countries while banking crisis had harmful effects on MENA economies. The quality of institutions did not have a clear impact except for rule and order and democratic institution. These results have important policy implications. To grow output and avoid the occurrence of banking crisis, MENA countries should reinforce their institutions quality by adopting good practice of governance and regulation.

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

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.