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MENA Region Remains at Crossroads: A Panel Analysis Modelling Political Stability And Economic Freedom To Determine Economic Growth

Article

Last updated: 29 Dec 2024

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Tags

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Abstract

Political and economic instability have been among the most critical issues facing the Middle East and North Africa (MENA). This paper seeks to revisit the theoretical and empirical literature to assess the region's economic growth indicators after more than 10 years of the Arab Spring events with the aim of assessing how political stability and higher scores of economic freedom affect economic growth in 14 MENA region countries over a time span of 20 years from 2001- 2021. The main econometric estimation uses the Arellano–Bover/Blundell–Bond model via a Generalized Method of Moments (GMM) estimator to address the endogeneity and reverse causality existing between political and economic freedom measures and economic growth. The main findings detect a positive relationship between political stability and economic growth across robust estimations, whereas a positive relationship was confirmed for most of the overall economic freedom index components to impact economic growth, namely, business freedom, investment freedom, and judicial effectiveness.

DOI

10.21608/msamsj.2023.225886.1021

Keywords

Economic growth, Governance, GMM, Arab countries

Authors

First Name

Azza

Last Name

Kamal

MiddleName

-

Affiliation

Economics Department, Modern Sciences and Arts University, Ontario, Canada

Email

amkamal@msa.edu.eg

City

Giza

Orcid

0000-0001-9593-7565

First Name

Esmat

Last Name

Kamel

MiddleName

Mostafa

Affiliation

Economics Department, Modern Sciences and Arts University, Cairo, Egypt

Email

esmmostafa@msa.edu.eg

City

Giza

Orcid

orcid.org/0000-0003-2742-0403

First Name

Salah

Last Name

Fadel

MiddleName

Ahmed

Affiliation

Department of Economics, Modern Sciences and Arts University, Giza, Egypt

Email

salah.ahmed1@msa.edu.eg

City

Giza

Orcid

0009-0009-1523-2270

First Name

Marics

Last Name

Esmits

MiddleName

-

Affiliation

Managing Director, Ticon Holdings Inc., Ontario, Canada

Email

mesmits@ticonholdings.com

City

Cambridge, Ontario, Canada

Orcid

0009-0002-6799-0742

Volume

2

Article Issue

3

Related Issue

42575

Issue Date

2023-08-01

Receive Date

2023-07-29

Publish Date

2023-08-01

Page Start

49

Page End

79

Print ISSN

2974-3028

Online ISSN

2974-3036

Link

https://msamsj.journals.ekb.eg/article_310323.html

Detail API

https://msamsj.journals.ekb.eg/service?article_code=310323

Order

310,323

Type

Original Article

Type Code

2,535

Publication Type

Journal

Publication Title

MSA-Management Sciences Journal

Publication Link

https://msamsj.journals.ekb.eg/

MainTitle

MENA Region Remains at Crossroads: A Panel Analysis Modelling Political Stability And Economic Freedom To Determine Economic Growth

Details

Type

Article

Created At

29 Dec 2024