The role of education, technological diffusion and trade is investigated for 11 MENA countries for 1980-1992, using panel data techniques. Technological diffusion is measured by R&D activities in each country?s major trading partners and that country?s import propensity from each partner. Results suggest that although education contributes to economic growth, this impact is somewhat limited. Further investigation suggests that this limited impact may be caused by the inefficient adoption and diffusion of technology in MENA, possibly because of the relative inwardness of such sectors. Policy implications stress that economic openness is key in allowing human capital to contribute to technological diffusion.
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Paper provided by Economic Research Forum in its series Papers with number
9921.