Economic Growth In MENA Countries Research Articles

The Impact of Knowledge-Based Economy on Growth Performance: Evidence from MENA Countries

The aim of this paper is to examine the empirical relationship between the knowledge-based economy and economic growth in MENA countries. We are interested in identifying pillars linked with the transition to a knowledge-based economy that is related to growth performance. We used a growth model in Barro and Sala-i-Martin framework (1995) for the period of 2010–2015. It includes a panel data set that consisted the annual economic growth rate for selected MENA countries and, within the theoretical and empirical framework, applied the four indicators used for identifying the situation of the knowledge-based economy. The empirical results obtained using the generalized method of moments dynamic panel indicates institutions, human capital and research, infrastructure, and business sophistication to be the pillars of knowledge-based economy that influence a significant and positive economic growth in MENA countries. We suggest that governments in this region should consider the knowledge-related policies for accelerating transiting to the knowledge-based economy and improving economic performance.

Are exports a reliable source of economic growth in MENA countries? New evidence from the rolling Granger causality method

Earlier investigations have concentrated on the effect of export expansion on economic growth while ignoring the importance of the stability of such relationship. This paper re-investigates empirically the export-led growth (ELG) hypothesis for five countries in the MENA region: Egypt, Jordan, Morocco, Tunisia, and Turkey, using the Granger causality technique. This study covers the sample period from 1980:Q1 to 2012:Q4. With the full sample, we find evidence supporting the ELG hypothesis only in Jordan, Morocco, and Turkey. Nonetheless, our time-varying Granger causality results have significantly validated the evidence of instability of the ELG hypothesis in these MENA countries. Therefore, changes in policies and regulations to improve the export sector of these countries will not ultimately pay off in terms of achieving high rates of stable economic growth in these countries. Policymakers in these countries should search for the alternative catalyst of growth to continuously as well as to effectively promote long-term economic growth in these countries.

Foreign Direct Investment, Trade, and Economic Growth in MENA Countries: Empirical Analysis Using ARDL Bounds Testing Approach

This article proposed to analyze the interrelationship between foreign direct investment (FDI), international trade, and economic growth for 15 selected Middle Eastern and North African countries over the period 1999–2012 using autoregressive distributed lag test as an approach to examine the cointegration and the vector error correction model. Our findings show that there exists a long-run unidirectional relationship running from FDI to economic growth in MENA countries. We also found that FDI can generate positive spillover externalities for the previously mentioned countries. This belief was also confirmed for the host countries. The results obtained about these countries could be compared to those of other developing countries, considered to be experienced in attracting FDI and trade liberalization. These empirical insights are of a particular interest to policymakers as they help build sound economic policies to ensure a sustainable development.

Modelling the treatment effect of renewable energy policies on economic growth: Evaluation from MENA countries

This paper investigates the effects of renewable energy (RE) policies on economic growth in MENA countries. Using the propensity score matching methodology, our empirical analysis, conducted on a sample of 24 economies (17 RE and 7 non-RE countries) from 1980 to 2012, shows that the treatment effect of RE policies has a significant and positive impact on stimulating and promoting economic growth in MENA economies that have implemented these energy policies. RE policies alone, however, are not sufficient. This change requires the collective long-term commitment of all stakeholders, including governments, citizens, financiers, private companies and international agencies. This would help impede policy overlaps and incoherence as well as consequently improve the overall policy effectiveness.

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

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.

Investigating the causality links between environmental quality, foreign direct investment and economic growth in MENA countries

This paper investigates the causal relationship between environmental quality, Foreign Direct Investment and economic growth using simultaneous-equation panel data VAR model a panel of 17 MENA countries over the period 1990–2012. Our empirical results pointed out that there is a unidirectional causality running from both FDI stocks and CO2 emissions to economic growth. They also indicate the existence of unidirectional causality running from economic growth to CO2 emissions. However, the results support the occurrence of unidirectional causality from FDI stocks to CO2 emissions. Our empirical result confirms the hypothesis of neutrality for the Environment-GDP link. There is bidirectional causality from CO2emissions and economic growth, and a bidirectional causal relationship between FDI stocks and CO2 emissions. For the global panel, we show that the existence of a unidirectional causality running from FDI stocks to economic growth; a bidirectional causality between economic growth and CO2 emissions; as well as a bidirectional causality between FDI stocks and CO2emissions.

The Impact of FDI Inflows and Environmental Quality on Economic Growth: an Empirical Study for the MENA Countries

This study examines the impact of foreign direct investment (FDI) inflows, environmental quality, and capital stock on economic growth in 17 Middle East and North African Countries (MENA) countries. We did our analysis in the panel framework over the period 1990–2012 using both the static (ordinary least squares method (OLS), fixed effect (FE), and random effect (RE)) and dynamic (difference-generalized method of moments (Diff-GMM) and system-generalized method of moments (Sys-GMM)) panel data approaches. The empirical results show that the increases in FDI inflows and capital stock enhance the economic growth process in MENA countries. On the other hand, our findings demonstrated that economic growth in MENA countries reacts negatively to the environmental degradation. These empirical insights are of particular interest to policymakers as they help build sound external and environmental policies to sustain economic growth.

Does Financial Instability Moderate the Relationship Financial Integration - Economic Growth in MENA Countries.

This paper examines the relationship between financial integration and economic growth while taking into account a financial instability indicator in the analysis of this relationship. There will have to be a reconciliation between those who advocate the existence of positive effects and a significant relationship, such as, Bailliu (2000); Eichengreen (2001); Honig (2008); Klein and Olivei (2008); Bonfi glioli (2008), and those who strongly recommend the existence of a negative relationship as it is found in the writings of Grilli and Milesi-Ferretti (1995); Edison et al (2002b); Kose et al (2006); Neto and Veiga (2008). This study uses the fixed-effect model of panel data applied on a sample of 10 MENA countries over the 2000/2013 period. The study reveals that the direct relationship between financial integration and economic growth is positive and stable. Moreover, there is a weak relationship between economic growth and financial instability, which means that the countries of our sample are not financially destabilized. It was also noted that financial instability does not alter the positive effects of financial integration on economic growth.

The nexus between electricity consumption and economic growth in MENA countries

We assess the causality between electricity consumption and economic growth for a panel of twelve MENA countries (seven energy exporters and five energy importers) over the period 1975–2010 within a bivariate framework using panel cointegration methods and panel causality test. By doing so, we show that 16.66% of MENA countries supported the growth hypothesis, 25% the conservation hypothesis, 33.33% the feedback hypothesis and 25% the neutrality hypothesis. For energy exporters, we support the growth hypothesis in 14.28% of cases at the same way of conservation hypothesis, the feedback hypothesis in 42.88% and the neutrality hypothesis in 28.57%. For energy importers, almost 60% of cases provide support for conservation hypothesis. Additionally, we show that Iran and Turkey behave better than the rest of countries in terms of the focal link. We attribute this apparently result to the good structuring of the electricity sector.

Through Which Channels Can Remittances Spur Economic Growth in MENA Countries?

AbstractThis paper studies the remittances’ effect on economic growth. Using panel data techniques, the authors estimate several specifications to provide support of such relationship for MENA countries over the period 1980–2009. The findings provide new robust evidence on how remittances are used in MENA countries and detect the main channels which may interfere in this process. Estimation outcomes show that the most important part of remittances is consumed and that remittances stimulate growth only when they are invested. Moreover, empirical results suggest that remittances can enhance growth by encouraging human capital accumulation. Human capital is therefore an effective channel through which remittances stimulate growth in MENA countries.

Effects of Human Development Indexes (HDIs) on Economic Growth in MENA Countries: An Emphasis on Education and Literacy Indexes

Necessity of paying attention to human capital and investment on it, it is clear in the economical analyzing and literature on it and because this they conducted several survey in the section of human capital in countries economy growth. Today education section is one of the key factors of human development indexes in the growth process and economic growth. In the past they recognize physical investment and work force as an only effective factor to development and growth, but today they recognize education and graduation to growth models since clearing human force quality effect in economic growth process. The result of this experiment survey is human development indexes special education and literacy indexed to economic growth for MENA’s group countries with regression based on date of Cobb-Douglas production function through 1980-2010. The results of this estimate show that literacy and education indexes have meaningful and positive effect on economic growth. The suggestion to economic agents based on present survey finding that pay more attention to human development indexes especially to education section.

Through Which Channels Can Remittances Spur Economic Growth in MENA Countries?

This paper studies the remittances' effect on economic growth. Using panel data techniques, the authors estimate several specifications to provide support of such relationship for MENA countries over the period 1980-2009. The findings provide new robust evidence on how remittances are used in MENA countries and show the main channels which may interfere in this process. Estimation outcomes show that the most important part of remittances is consumed and that remittances stimulate growth only when they are invested. Moreover, empirical results suggest that remittances can enhance growth by encouraging human capital accumulation. Human capital is therefore an effective channel through which remittances stimulate growth in MENA countries.

Oil consumption, CO 2 emission and economic growth in MENA countries

This study examines the impact of oil consumption on the economic growth of the MENA countries during the period 1980–2009. The panel model is employed in this study. Based on the cointegration test results, it was found that CO 2 emission, and oil consumption has a long run relationship with economic growth. Moreover, there is also a bi-directional Granger causality between oil consumption, CO 2 emission and economic growth in both the short run and the long run. The results of this study show clearly that oil consumption plays an important role in the economic growth of the MENA countries.

Foreign Direct Investment, Macroeconomic Instability and Economic Growth in Mena Countries

This paper aims at analyzing the possible influence of foreign direct investment (FDI) on economic growth in the particular case of Middle East and North African countries (MENA). During the last years, the relation between FDI and growth in LDCs has been discussed extensively in the economic literature. However, the view that FDI stimulates economic growth does not receive an unanimous support. In order to access empirically this relation in MENA countries, we use a dynamic panel procedure with observations per country over the period 1970-2005. To improve efficiency, we use the standard “difference” and “system” GMM and 2SLS estimators. Our findings show that there is no independent impact of FDI on economic growth. The growth-effect of FDI does not also depend on degree of openness to trade and income per capita. But, the positive impact of FDI on economic growth depends on macroeconomic stability: there is a threshold effect of annual percentage change of consumer prices.

Foreign Direct Investment, Macroeconomic Instability and Economic Growth in MENA Countries

This paper aims at analyzing the possible influence of foreign direct investment (FDI) on economic growth in the particular case of Middle East and North African countries (MENA). During the last years, the relation between FDI and growth in LDCs has been discussed extensively in the economic literature. However, the view that FDI stimulates economic growth does not receive an unanimous support. In order to access empirically this relation in MENA countries, we use a dynamic panel procedure with observations per country over the period 1970-2005. To improve efficiency, we use the standard “difference” and “system” GMM and 2SLS estimators. Our findings show that there is no independent impact of FDI on economic growth. The growth-effect of FDI does not also depend on degree of openness to trade and income per capita. But, the positive impact of FDI on economic growth depends on macroeconomic stability: there is a threshold effect of annual percentage change of consumer prices.

Migrants and Housing Investments: Theory and Evidence from Nigeria

The dominance of housing may reflect limitations in the menu of investment choices available to migrants in the country of origin. In many developing countries individuals face relatively few savings opportunities where productive assets (such as land farm assets) are associated with high risks and/or low rates of return. Housing investments offer unique advantages in that they are durable highly visible and associated with low risk and monitoring requirements. However there are some important drawbacks associated with housing investments. In particular where resale and rental markets for housing are not well developed migrants housing assets may be relatively illiquid and irreversible. In the next section I provide some background on general patterns of investment behavior among migrants. Here the evidence on housing investments is discussed for a rich set of migrant sending and receiving countries. In Section III I develop the conceptual framework for understanding migrants housing investment decisions. Section IV provides a description of the data sources. Section V outlines the empirical strategy. In Section VI I discuss the empirical findings. Section VII presents conclusions. (excerpt)