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The Nexus Relationship between Exports and Government size Dynamic Panel Evidence from the MENA Region

Author

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  • Mahmoud M. Sabra

    (Associate Prof. of Applied Economics, Al Azhar University Gaza, Palestine Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

" Objective - This article aims to detect empirically, the nexus relationship between exports and government size in seven middle-income MENA countries, namely, Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine, and Tunisia, from 2000 to 2019. Methodology/Technique - This article employs two econometric techniques, simultaneous equations using OLS, and recent Dynamic Panel Data system analysis. Findings - Article results show a significant and robust negative association between exports and government size that indicates the need for government adoption of a series of policies for exports promotion strategies and likewise, openness can increase both variables. Growth and FDI increase exports and decrease government size, while ODA decreases exports and increases government size with Inflation-decreasing exports. Novelty - This article shines a light on the expanded government size capable of hindering growth and exports through the adoption of unfavourable policies to support the private sector, growth, and exports. Ultimately, this determines whether government policies are favourable or not. Type of Paper - Empirical"

Suggested Citation

  • Mahmoud M. Sabra, 2021. "The Nexus Relationship between Exports and Government size Dynamic Panel Evidence from the MENA Region," GATR Journals jber209, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jber209
    DOI: https://doi.org/10.35609/jber.2021.6.2(5)
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    References listed on IDEAS

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    More about this item

    Keywords

    Exports; Government size; MENA; GMM DPD system;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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